Pedro Co purchased a bond investment in Juan Company. The following are the data pertaining to Pedro's Investments in Debt Security. Date of purchase: January 1, 2021 Purchase price: P4,200,000 Principal amount: P4,000,000 Cash interest: 5% per annum, payable on December 31 Effective interest: 3.8806% per annum Maturity date: December 31, 2025 Fair value of the bond: December 31, 2021 at 3% rate P4,297,368 December 31, 2022 at 3.5% rate P4,168,098 December 31, 2023 at 4% rate P4,075,444 December 31, 2024 at 4.5% rate P4,019,139 If initially the investment is accounted for as FVPL for two years and then shifted it to amortized method, what is the carrying value of the Investment at the end of 2023?
Q: Compute depreciation expense for the first three years using the double-declining-balance method. (F…
A: Depreciation: Depreciation is the method of allocating the cost of an asset to its useful life. The…
Q: A comparative Income statement is given below for McKenzie Sales, Limited, of Toronto: McKenzie…
A: Under common size analysis each item of the financial statements is analyzed as a percentage of the…
Q: On Jan. 1, 2020, ABC Corporation entered into a franchise agreement with a P570,000 cash payment as…
A:
Q: Covitech Ltd has successfully launched 2 different vaccines mRNA 1 and mRNA2 t mitigate the impact…
A: Activity based costing (ABC) is the costing method which allocates the overheads (activity…
Q: B (ii) and (iii) only
A: Monetary items include all types of current assets is also not true because monetary items may also…
Q: Juan was hired at Brownstone Warehouse on August 10, 1978. His employment terminated March 25, 2006.…
A: Retiring Allowance The amount received during or after the retirement of an employee due to years…
Q: Telt 0462 Kelly Company had finished goods inventory $3,200 on January 1 and $4,000 on December 31.…
A: Cost of Goods Manufactured: The sum total of all manufacturing expenses for items that are completed…
Q: Which of the following financial statements shows the changes in Owners' equity during a period of…
A: Option A :— It is Incorrect. Because Income Statement :— It is one of the financial statements of a…
Q: Note Payable Ordinary Share Capita Ret. Earnings/(Deficit) ( Tot. Liab. & Equity 300,000.00…
A: Liquidation For the liquidation process first to determine the net realized value of the assets and…
Q: Cheyenne Corp. purchased a 12-month insurance policy on March 1, 2017 for $7680. At March 31, 2017,…
A: Adjusting journal entry: At year-end when the company finalizes its accounts then any unrecognized…
Q: On January 1,2020, Andrea signs a 5-year noncancelable lease agreement to lease a heavy equipment to…
A: Annual Lease Payment: Lease payments are payments made in accordance with a lease agreement, in…
Q: If the Fed wants to increase the money supply, it can sell bonds in open-market operations. If the…
A: Answer:- "If the Fed wants to increase the money supply, it can sell bonds in open-market…
Q: Problem 8-4A Part 2 2. Prepare the Journal entries necessary to make the company's book balance of…
A: Ideally cash balance as per cashbook must reconcile with bank balance as per bank statement. Bank…
Q: R Company has the following production information available for June: Total materials costs…
A: Total manufacturing cost is a combination of material cost and conversion cost. So the sum of…
Q: Based on company records of similar equipment, a consulting aerospace engineer at Aerospatiale…
A: A choice about the capital budget is both a financial commitment and an investment. Taking on a…
Q: Keynote Musical Theatre has journalized their adjusting entries and prepared their adjusted trial…
A: Closing entries are the entries that are recorded at the end of the year in the books to close the…
Q: S1] Under the current PPRS, a franchisor recognizes the initial franchise fee as revenue in full at…
A: Here asked for multi question we will solve for first question for you according to guidelines. If…
Q: On May 1, Splish Brothers Corporation purchased 3.200 shares of its $10 par value common stock at a…
A: Treasury stock: Shares that are bought back by the company from the open market but not retired from…
Q: b. IKEA Berhad used the allowance method to account for uncollectible accounts. Apr 1 Sold RM2,500…
A: Date Particulars Debit (RM) Credit (RM) Apr-01 Notes Receivables 2500 0 Sales 0 2500…
Q: Selected financial data for Bahama Bay and Caribbean Key are as follows: ($ in millions). Total…
A: The question requires the calculation of times interest earned ratio and which company is better to…
Q: Choose an answer by this following choices: A. Cash provided/used by operating activities. B. Cash…
A: The cash flow statement activities are classified as operating, investing and financing activities.…
Q: of Karachi owns a building in clifton area of karachi.On 1.7.2021 he rented out the building to Mr…
A: Income From House Property : Income from house property which is expected by the owner…
Q: Required information [The following information applies to the questions displayed below.] Listed…
A:
Q: Land and buildings 114 000 Equipment 210 000 Investment (80 000 shares of £1 each in Rhythm Ltd at…
A: Ratio Analysis : Ratio analysis is the numerical relation among the items of the financial…
Q: The ABC Manufacturing Company has the following transactions: 1. The company processed P400,000 raw…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: B) Benchmark from Market research C) Timesheet of the company employees 2. Passwords and firewalls…
A: The company is having external and internal sources of information but there is need of safety and…
Q: At May 1, 2017, Oriole Company had beginning inventory consisting of 340 units with a unit cost of…
A: Inventory valuation is based on the flow-off issue used by the organization. It can be the first in…
Q: roblem 8-3A Establishing, reimbursing, and increasing petty cash LO P2 Nakashima Gallery had the…
A: Introduction: A journal entry is a record of a business deal in the accounting system of an…
Q: Darth Vader lightsaber is a depreciable asset. He uses the straight-line depreciation method. He…
A: Depreciation is considered an operating expense, which is charged on the value of the Asset. It can…
Q: On April 1, 2XX1, Globe Corporation, a newly formed company, had the following share capital issued…
A: A) Ordinary share capital:- The amount of Ordinary share capital for Globe Corporation =…
Q: Time left 0:28:4 Fraser Company has forecast purchases on account to be $210,000 in March, $270,000…
A: A cash budget is an estimate of a corporation's cash flows for a given time span. A cash budget is…
Q: rporation is a franchisor. On Dec. 31, 2020, it entered into a franchise agreement that requires the…
A: Notes are to be settled by the equal annual payments that carry the payment for interest and…
Q: In each of the following questions only write down the letter that represents the correct answer.…
A: 1. Total cost = Cost of goods sold + Rental expense + Insurance expense Cost of goods sold =…
Q: ABC Enterprises entered into a five-year lease agreement on 1 November 2020, paying £10,975 per…
A: Based on the given data, The lease payable table is as follows: Year Beginning Value Interest (@…
Q: Required: Compute the amount of Net Sales to be reported for the month ended July 31. (Round your…
A: Sales revenue refers to the amount received by the company from selling goods and services to the…
Q: The table inputs are still wrong..........
A: Overhead over applied means, when the applied overhead is more than actual overhead incurred.…
Q: What are the risk factors in a risk management about the wiredcards Ag's Scandal?
A: The wiredcards Ag's Scandal was biggest scandal in the fintech industry once was biggest innovator…
Q: Paragon Properties built a shopping center at a cost of $50M in year 2010. The company started…
A:
Q: Exercise 15-10 (Algo) Recording materials, labor, overhead, and sales; computing inventory cost LO…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: calculate net income after the cooperate income tax is paid for quarter 2 from the following income…
A: Net income is the net profit or loss left after paying all expenses and allowances for an accounting…
Q: and buildings 114 000 Equipment 210 000 Investment (80 000 shares of £1 each in Rhythm Ltd at cost…
A: Ratio Analysis : It is the relationship between the two or more items of the financial statements to…
Q: Department G had 3,600 units, one-third completed at the beginning of the period, 12,000 units were…
A: Work in process (WIP) is a type of inventory which is not completely produced but not completely…
Q: Pau, Inc., which has fixed costs of $51401, sells two products whose sales price, variable cost per…
A: The Break-even point indicates that total units are to be sold by the business entity to recover its…
Q: Unearned service revenue 149 Common stock 266 Retained earnings 8060 Service revenue…
A: Net Income For the Year :— It is Revenue minus expenses of the year. Net Income = Revenue — Expenses…
Q: Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store's…
A: Introduction: A balance sheet is a financial statement which shows the assets, liabilities, and…
Q: Exercises Exercise 4-1 Construction accounting The Gagliano Construction Company contracted to…
A: Comment- Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…
Q: On January 1, 2024, White Water issues $550,000 of 5% bonds, due in 15 years, with interest payable…
A: Adjusting journal entry: At year-end when the company finalizes its accounts then any unrecognized…
Q: Which of the following accounts is an owners equity account ? A.Account payable B.Prepaid expenses…
A: Owners Equity Account It is the owners' investment in an asset after all liabilities have been…
Q: The business grants 25% discounts to senior citizen customers. During the taxable period, total…
A: The correct answer is option - b) 75,000
Q: All sales are made on credit. Based on past experience, The Beverly Hillbillies Trading Company…
A: Bad debts :— Loans & any outstanding balance which is Uncollectible by the Company and…
Step by step
Solved in 3 steps with 2 images
- Pedro Co purchased a bond investment in Juan Company. The following are the data pertaining to Pedro’s Investments in Debt Security. Date of purchase: January 1, 2021 Purchase price: P4,200,000 Principal amount: P4,000,000 Cash interest: 5% per annum, payable on December 31 Effective interest: 3.8806% per annum Maturity date: December 31, 2025 Fair value of the bond: December 31, 2021 P4,894,000 December 31, 2022 P4,560,000 The bond was sold on December 31, 2022 at its fair value. If the bonds are held for collection of contractual cash flow, what amount is the carrying value of investment in 2024? a. 4,000,000 b. 4,043,102 c. 4,084,594 d. 4,200,000Pedro Co purchased a bond investment in Juan Company. The following are the data pertaining to Pedro’s Investments in Debt Security. Date of purchase: January 1, 2021 Purchase price: P4,200,000 Principal amount: P4,000,000 Cash interest: 5% per annum, payable on December 31 Effective interest: 3.8806% per annum Maturity date: December 31, 2025 Fair value of the bond: December 31, 2021 P4,894,000 December 31, 2022 P4,560,000 The bond was sold on December 31, 2022 at its fair value. If the bonds are held for trading, the amount of income (loss) recognized in Profit or Loss in 2022?Pedro Co purchased a bond investment in Juan Company. The following are the data pertaining to Pedro’s Investments in Debt Security. Date of purchase: January 1, 2021 Purchase price: P4,200,000 Principal amount: P4,000,000 Cash interest: 5% per annum, payable on December 31 Effective interest: 3.8806% per annum Maturity date: December 31, 2025 Fair value of the bond: December 31, 2021 P4,894,000 December 31, 2022 P4,560,000 The bond was sold on December 31, 2022 at its fair value. If the bonds are purchased on September 1, 2021 rather than January 2021 and the company still reports on a calendar basis, and the bonds are held for collection of contractual cash flow, what amount is the carrying value of investment in 2024? a. 4,098,425 b. 4,070,763 c. 4,084,594 d. 4,043,102
- The following information is also available: 1. Current assets include cash P3,800, accounts receivables P18,500, note receivables (maturity date is on July 1,2023) P10,000 and land P12,000. 2. Long term investments include a P4,600 investment in fair value though other comprehensive income securitiesthat is expected to be sold in 2022 and a P9,000 investment in AllDay company bonds that are expected to be helduntil their December 31, 2029 maturity date. 3. Property and equipment include buildings costing P63,400, inventories costing P30,500 and equipment costingP29,600. 4. Intangible assets include patents that cost P8,200 and on which P2,300 amortization have accumulated, andtreasury shares that costs P1,800. 5. Other assets include prepaid insurance (which expires on November 30, 2022) P2,900, sinking fund for bondretirement P7,000 and trademarks that cost P5,200 and on which P1,500 amortization has accumulated. 6. Current liabilities include accounts payable P19,400, bonds payable…Pedro Co purchased a bond investment in Juan Company. The following are the data pertaining to Pedro’s Investments in Debt Security. Date of purchase: January 1, 2021 Purchase price: P4,200,000 Principal amount: P4,000,000 Cash interest: 5% per annum, payable on December 31 Effective interest: 3.8806% per annum Maturity date: December 31, 2025 Fair value of the bond: December 31, 2021 P4,894,000 December 31, 2022 P4,560,000 The bond was sold on December 31, 2022 at its fair value. If the bonds are held for collection of contractual cash flow and for sale of financial asset, what amount is the carrying value of Investment in 2022? a. 4,200,000 b. 4,124,536 c. 3,800,000 d. 4,560,000Pedro Co purchased a bond investment in Juan Company. The following are the data pertaining to Pedro’s Investments in Debt Security. Date of purchase: January 1, 2021 Purchase price: P4,200,000 Principal amount: P4,000,000 Cash interest: 5% per annum, payable on December 31 Effective interest: 3.8806% per annum Maturity date: December 31, 2025 Fair value of the bond: December 31, 2021 P4,894,000 December 31, 2022 P4,560,000 The bond was sold on December 31, 2022 at its fair value. If the bonds are held for trading, the amount of long term investment be presented in the statement of financial position in 2022?
- The following information is also available: 1. Current assets include cash P3,800, accounts receivables P18,500, note receivables (maturity date is on July 1,2023) P10,000 and land P12,000. 2. Long term investments include a P4,600 investment in fair value though other comprehensive income securitiesthat is expected to be sold in 2022 and a P9,000 investment in AllDay company bonds that are expected to be helduntil their December 31, 2029 maturity date. 3. Property and equipment include buildings costing P63,400, inventories costing P30,500 and equipment costingP29,600. 4. Intangible assets include patents that cost P8,200 and on which P2,300 amortization have accumulated, andtreasury shares that costs P1,800. 5. Other assets include prepaid insurance (which expires on November 30, 2022) P2,900, sinking fund for bondretirement P7,000 and trademarks that cost P5,200 and on which P1,500 amortization has accumulated. 6. Current liabilities include accounts payable P19,400, bonds payable…On January 1, 2021, Panama Company purchased P3,000,000 face amount, 9% bonds. The bonds were purchased to yield 8% interest. The bonds mature on January 1, 2026, and pay interest annually on December 31. The entity used 2 decimal places for the PVF. If measured at amortized cost, how much is the carrying amount of investment in bonds on December 31, 2021?Requ a. Using the present value tables in Chapter 6, calculate the proceeds (issue price) of Learned, Inc.'s, bonds on January 1, 2013, assuming that the bonds were sold to provide a market rate of return to the investor. b. Assume instead that the proceeds were $93,000,000. Use the horizontal model (or write the journal entry) to record the payment of semiannual interest and the related premium amortization on June 30, 2013, assuming that the premium of $3,000,000 is amortized on a straight-line basis. o 0ompound interest method
- The following information is also available: 1. Current assets include cash P3,800, accounts receivables P18,500, note receivables (maturity date is on July 1, 2023) P10,000 and land P12,000. 2. Long term investments include a P4,600 investment in fair value though other comprehensive income securities that is expected to be sold in 2022 and a P9,000 investment in AllDay company bonds that are expected to be held until their December 31, 2029 maturity date. 3. Property and equipment include buildings costing P63,400, inventories costing P30,500 and equipment costing P29,600. 4. Intangible assets include patents that cost P8,200 and on which P2,300 amortization have accumulated, and treasury shares that costs P1,800. 5. Other assets include prepaid insurance (which expires on November 30, 2022) P2,900, sinking fund for bond retirement P7,000 and trademarks that cost P5,200 and on which P1,500 amortization has accumulated. 6. Current liabilities include accounts payable P19,400, bonds…On April 1, 2021 Jay Sy Co. purchased a P200,000 at face value bond investment that will mature on April 1, 2027. Interest on this bond is collectible every April 1 starting 2022, Jay Sy Co. account for this investment based on business model of collecting contractual cash flows and to sell when circumstances warrant. Jay Sy Co. paid other directly attributable cost of P10,160 to acquire the investment. The bond after transaction cost will yield 5% interest. Effective interest at the end of 2021, and 2023 were 3%, and 6%, respectively. While the investment is quoted at 105 on December 31, 2022. Jay Sy Co. reported interest income of P7,881 in 2021 related to this bond, amortization of P1,119 and cumulative balance in other comprehensive income of P19,707 at the end of 2021. How much is the correct interest income that Jay Sy should report in its Statement of Comprehensive income for the period ending December 31, 2022? How much is the amount of unrealized gain (loss) in its…. 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