The following information pertaining to a 5-year P4,000,000 debt investment with a stated rate of 12% was taken from the records of Eggplant Company: Fair value Market Amortized cost rates P4,303,263 P4,303,263 10% January 1, 2019 December 31, 2019 4,253,589 4,388,766 9% December 31, 2020 4,198,948 4,097,749 11% The investment was designated at fair value through other comprehensive income based on the business model of the company. On January 1, 2020, the investment was reclassified to financial asset at amortized cost. The fair value on the date of reclassification was the same as the fair value on December 31, 2019. 1. How much is the interest income for 2020? 2. How much is the amount of investment to be reported in the December 31, 2020 statement of financial position? 3. How much is the cumulative balance of the realized gain (loss) to be reported in the shareholders' equity section of the entity's December 31, 2020 statement of financial position?

The following information pertaining to a 5-year P4,000,000 debt investment with a stated rate of 12% was taken from the records of Eggplant Company: Fair value Market Amortized cost rates P4,303,263 P4,303,263 10% January 1, 2019 December 31, 2019 4,253,589 4,388,766 9% December 31, 2020 4,198,948 4,097,749 11% The investment was designated at fair value through other comprehensive income based on the business model of the company. On January 1, 2020, the investment was reclassified to financial asset at amortized cost. The fair value on the date of reclassification was the same as the fair value on December 31, 2019. 1. How much is the interest income for 2020? 2. How much is the amount of investment to be reported in the December 31, 2020 statement of financial position? 3. How much is the cumulative balance of the realized gain (loss) to be reported in the shareholders' equity section of the entity's December 31, 2020 statement of financial position?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter4: The Balance Sheet And The Statement Of Shareholders' Equity

Section: Chapter Questions

Problem 5RE

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The following investment account was taken from the general ledger of One Dream Investment Company: Debt Investments - Fulfilled Dream 6% bonds (2,000,000 face value, due December 31, 2027) Date PR Debit Credit Balance January2, 2022 VR VR P1,812,300 P1,812,300 June 30, 2022 CRJ 60,000 1,752,300 Dec. 31, 2022 CRJ 60,000 1,692,300 Dec. 31, 2022 195,000 1,497,300 In the course of your examination, you obtained the following information: Interest checks were received on June 30 and December 31 and were credited to the investment account. One dream sold P200,000 of its investment on December 31, 2022 for P195,000. Effective interest rate on this investment, as computed by your audit staff, is 8%. (4% - semi annual) One Dream included this investment in a portfolio that is held to collect and for sale. The fair value at December 31, 2022 and 2023 is 97.5 and 105, respectively. How much is the gain or…
Subject :- ADVANCED FINANCIAL ACCOUNTING (FIN611) Question # 2:XYZ Limited has the following loans outstanding as at December 31, 2020. Calculate the Capitalization RateLoan – A @ 8% (taken at January 01, 2020) Rs. 600,000Loan – B @ 5% (taken at July 01, 2020) Rs.400,000Loan – C @ 9% (taken at September, 01 2020) Rs.300,000The company spent following amounts on construction of an asset.March 01, 2020. Rs. 500,000August 01, 2020. Rs. 400,000December 1, 2020 Rs. 400,000 Note:- Solve these question and please explain in detail in such a way that i will get full marks.
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. On December 31, 2019, Sinigang Company purchased debt investments at amortized cost, P3,000,000 serial bonds with a nominal rate of 10% and effective rate at that time is 13%. Bonds with a face value of P1,000,000 mature on December 31, 2020 and every December 31 thereafter. Use 3 decimal places for PV factors. What is the carrying amount of the debt investment on December 31, 2020?A. P1,923,212B. P2,852,400C. P2,923,212D. P3,000,000
Practice Exercise 17-04 (Part Level Submission) At December 31, 2020, the available-for-sale debt portfolio for Pina Corp. is as follows. Unrealized Gain (Loss) $(1,800 ) 1,600 Securities Cost Fair Value Good Co. Bonds %$428,500 $26,700 Home Co. Bonds Grand Inc. Debentures 28,600 30,200 41,700 42,700 1,000 98,800 99,600 80 Before an adjusting entry on December 31, 2020, the fair value adjustment account contained a credit balance of $470. Pina Corp. reported net income of $76,300 for 2020. - (a) Prepare the adjusting entry at December 31, 2020, to report the portfolio at fair value. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit Click if you would like to Show Work for this question: Open Show Work
On January 1, 2020, A Corp. had the following investments: Classification Investment MarketValue MaturityValue Cost Trading K Inc. bonds $1,900 $1,800 Trading S Co. bonds 3,100 3,000 Held-to-maturity G Inc. bonds (due 12/31/2022) $10,000 9,700 During the year, A Corp. acquired M Co. bonds for $1,000 and classified it as trading. At year-end, the M Co. bonds have fair market value of $1,200. The K Inc. investment on December 31 had a fair market value of $2,500. The S Co. investment had a December 31 market value of $3,500, and the G Inc. bonds had a December 31 market value of $9,850. Required: Indicate the balance sheet classification and where unrealized holding gains/losses would appear on the December 31, 2020 financial statements for each investment. Classification Balance SheetValuation : Trading Securities (at fair value) $fill in the blank 2 : Held-to-maturity (amortized cost) $fill in the blank 4
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At December 31, 2025, the available-for-sale debt portfolio for Pharoah, Inc. is as follows. Security Cost Fair Value Unrealized Gain (Loss) A $17,900 $14,400 $(3,500) B 11,100 14,000 2,900 C 23,300 25,700 2,400 Total $52,300 $54,100 1,800 Previous fair value adjustment balance-Dr. 400 Fair value adjustment-Dr. $1,400 On January 20, 2026, Pharoah, Inc. sold security A for $14,500. The sale proceeds are net of brokerage fees. Pharoah, Inc. reports net income in 2025 of $115,000 and in 2026 of $138,000. Unrealized holding gains or losses equal $41,000 in 2026. (a) Prepare a statement of comprehensive income for 2025, starting with net income. PHAROAH, INC Statement of Comprehensive Income (b) eTextbook and Media Save for Later $ Attempts: 0 of 3 used Submit Answer The parts of this question must be completed in order. This part will be available when you complete the part above.
Client 7: The following data has been provided by your client, Hye Jin Corporation for their financial assets measured at FVOCI. On January 1, 2021, Hye Jin acquired P1,000,000, 10% bonds for P951,963. The principal is due on January 1, 2024 but interest is due annually every January 1. The effective interest rate is 12%. The bonds are measured at FVOCI. Information on fair values is as follows: December 31, 2021 98 December 31, 2022 103 13. How much is the value of the bonds on December 31, 2021? 14. Interest income recognized in 2022 15. Realized gain or loss from the investment in bonds on December 31, 2021 16. On January 1, 2023, Hye Jin sold all the bonds at 104. Calculate the gain on sale from the sale of bonds on January 1, 2023.
At December 31, 2020, the available-for-sale debt portfolio for Steffi Graf, Inc. is as follows. Security Cost Fair Value Unrealized Gain (Loss) A $17,500 $15,000 ($2,500) B 12,500 14,000 1,500 C 23,000 25,500 2,500 Total $53,000 $54,500 1,500 Previous fair value adjustment balance—Dr. 400 Fair value adjustment—Dr. $1,100 On January 20, 2021, Steffi Graf, Inc. sold security A for $15,100. The sale proceeds are net of brokerage fees. Assume that Steffi Graf, Inc. reports net income in 2020 of $120,000 and in 2021 of $140,000. Total holding gains (including any realized holding gain or loss) equal $40,000 in 2021. Instructions a. Prepare a statement of comprehensive income for 2020, starting with net income. b. Prepare a statement of comprehensive income for 2021, starting with net income.
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