what is the journal entry for transfer the investment to the new account?
On Jan. 1, 2018, ABC acquired P5,000,000 face
investment that will provide contractual cashflows. On acquisition
date, it had a fair value of P5,400,000, transaction cost of P10,020,
nominal interest rate of 9% payable every Jan. 1, a term of 5 years,
and an effective interest rate of 7%. The bonds were valued as
follows:
Date Fair Value Date Fair Value
Dec. 31, 2018 5,300,000 Dec. 31, 2021 5,100,000
Dec. 31, 2019 5,150,000 Dec. 31, 2022 5,050,000
Dec. 31, 2020 5,200,000 Dec. 31, 2023 5,000,000
If on Dec. 15, 2021, there was change in the purpose of
holding the asset to trading only and it qualifies for
reclassification, what is the
investment to the new account?
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