The following investment-related transactions were completed by the company during 2021:Purchased P3,000,000.00 of ABC Corporation 7% bonds, paying 102.5 plus accruedinterest of P52,500.00. In addition, the company paid brokerage fee of P15,000.00. Thecompany classified these bonds as a trading security.• Purchased 30,000 shares of XYZ Corporation ordinary shares at P125 per share plusbrokerage fees of P28,500. The company classified this stock as available for sale.Received semi-annual interest on the ABC Corporation bonds.Sold 4,500 shares of XYZ Corporation at P132 per share.Sold P480,000 of ABC Corporation 7% bonds at 102, plus accrued interest of P2,790.00.Determine the current portion of the investments.

The current portion of the investments means the amount of investment remaining after adjusting the…

Answered: Sold P480,000 of ABC Corporation 7%…

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Sold P480,000 of ABC Corporation 7% bonds at 102, plus accrued interest of P2,790.00.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

The following investment-related transactions were completed by the company during 2021:
Purchased P3,000,000.00 of ABC Corporation 7% bonds, paying 102.5 plus accrued
interest of P52,500.00. In addition, the company paid brokerage fee of P15,000.00. The
company classified these bonds as a trading security.
• Purchased 30,000 shares of XYZ Corporation ordinary shares at P125 per share plus
brokerage fees of P28,500. The company classified this stock as available for sale.
Received semi-annual interest on the ABC Corporation bonds.
Sold 4,500 shares of XYZ Corporation at P132 per share.
Sold P480,000 of ABC Corporation 7% bonds at 102, plus accrued interest of P2,790.00.
Determine the current portion of the investments.

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