What should be reported as interest revenue for 2026?
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INVESTMENT AT AMORTIZED COST
CASE III: On January 1, 2026, ABC purchased 9% bonds with a face amount of P4M to yield 10%. The bonds are dated January 1, 2026, 2024, mature on December 31, 2035 and pay interest annually on December 31. The entity used the interest method.
What should be reported as interest revenue for 2026?
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- Sheridan Company received proceeds of $812000 on 10-year, 8% bonds issued on January 1, 2019. The bonds had a face value of $770000, pay interest annually on December 31, and have a call price of 102. Sheridan uses the straight-line method of amortization. What is the amount of interest expense Sheridan will report with relation to these bonds for the year ended December 31, 2020? O $49000 O $61600 O $64960 $57400On January 1, 2020, ABC co. issued 3-year bonds with a face value of P1,200,000 and stated interest of 8% per year payable annually on December 31. The bonds were acquired to yield 10%. The bonds were appropriately classified as financial liability at amortized cost. Compute for the interest expense for 2020.A company issues $17200000, 9.8%, 20-year bonds to yield 10% on January 1, 2020. Interest is paid on June 30 and December 31. The proceeds from the bonds are $16904864. Using effective-interest amortization, how much interest expense will be recognized in 2020? $1690484 $1690608 $842800 $1685600
- INVESTMENT AT AMORTIZED COST CASE I: On July 1, 2026, ABC purchased 5,000 of the P1,000 face amount, 8% bonds to yield 10% per annum. The bonds, which mature on July 1, 2031, pay interest semiannually on January 1 and July 1. The interest method of amortization is used. What is the carrying amount of the bond investment on December 31, 2026.On J anuary 1, 2019, kelly Corporation acquired bonds wiili a face value of $500,000 for $483841.79, a price that yields a 10% effective annual interest rate. The bonds carry a 9% stated rate of interest, pay interest semiannually on June 30 and December 31, are due December 31, 2022, and are being held to maturity. Prepare journal entries to record the purchase of the bonds and the first two interest receipts using the: 1. straight-line method of amortization 2. effective interest metl1od of amortizationAyayai Company issues $ 17300000, 9.80%, 20-year bonds to yield 10% on January 1,2025. Interest is paid on June 30 and December The proceeds from the bonds are $ 17003148. Ayayai uses effective interest amortization. What amount of interest expense will Ayayai record for the June 30, 2025 payment? $ 1700314 $847700 $850157 $ 865000
- A company issues $25900000, 5.8%, 20-year bonds to yield 6% on January 1, 2020. Interest is paid on June 30 and December 31. The proceeds from the bonds are $25301326. Using effective-interest amortization, what will the carrying value of the bonds be on the December 31, 2020 balance sheet? (Round answer to 0 decimal place, e.g. 52.) $25309264 $25900000 $25333047 $25317444On December 31,2019, OP company purchased debt investment at amortized cost P3,000,000 serial bonds with a nominal interest rate of 10% and effective rate of 13%. Bonds with a face value of P1,000,000 mature on December 31, 2020 and every December 31 thereafter. Present value at 13% are as follows: 1 period-0.885; 2-periods-0.783; 3 periods-0.693. 1. What is the initial cost of the debt investment? 2. What is the carrying amount of the debt investment on December 31, 2020?On December 31, 2020, Alberta Inc. purchased $500,000, 10% bonds issued by Banff Ltd. The bonds have a maturity date of December 31, 2026. The market interest rate on December 31, 2020 was 9.5%. If Alberta Inc. accounts for this investment under the amortized cost model, what is the amount at which the Investment in Banff Ltd. Bonds will be reported on the statement of financial position at December 31, 2021, given that the current market interest rate is 9%? $519,448 $509,599 $511,050 $490,523
- On July 01, 2019, SALUDO RAW SA'YO SI MAGELLAN SABI NI LOLA CO. received P1,032,880 for P1,000,000 face amount, 12% bonds, a price that yields 10%. Using the interest method of amortization, how much is the interest expense for the six months ended December 31, 2019? a. P61,973 b. P60,000 c. P51,644 d. P50,000The summarized balance sheets of Pharoah Company and Sheridan Company as of December 31, 2025 are as follows: Assets Liabilities Capital stock Retained earnings Total equities Assets Liabilities Capital stock Retained earnings Total equities Pharoah Company Balance Sheet December 31, 2025 O $444000. O $297000. O $345000. O $350000. Sheridan Company Balance Sheet December 31, 2025 $2000000 $220000 1000000 780000 $2000000 $1480000 $330000 990000 160000 $1480000 If Pharoah Company acquired a 30% interest in Sheridan Company on December 31, 2025 for $350000 and the equity method of accounting for the investment was used, the amount of the debit to Equity Investments (Sheridan) to record the purchase would have beenOn October 1, 2023 macklin corporation issued 5 %, 10-year bonds with a face value of $6,000,000 at 104. Interest is paid on october 1 and April 1, with any premiums or discounts amortized on a straight-line basis. Bond interest payable reported on the december 31, 2023 balance sheet of Macklin corporation would be. A- $75,000 B - $ 69,000 C $138, 000 D $81, 000
