How much is the gain/loss on the sale of the debt investment?
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N company purchased debt investment at amortized cost at a discount of P20,000. Subsequently, N sold these bonds at a premium of P28,000. During the period the N held this investment, amortization of discount amounted to P4,000. How much is the gain/loss on the sale of the debt investment?
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- Oblivion Company purchased bonds at a discount of P100,000. Subsequently, the entity sold bonds at a premium of P140,000. During the period that the entity held this investment, amortization of the discount amounted to P20,000. What amount should be reported as gain on sale of bonds? a.120,000b.220,000c.240,000d.260,000The entity has an unsecured overdraft of R20000 at prospect Bank that carries an interest rate of 22% per annum. In which one of the following statement will this item be shown? A.Statement of financial position as a current liability B.Statement of financial position as a non current liability C.Statement of income and expenditure as finance costs C.Statement of financial position as current assetWhat was the calculation to get the Loss on Conversion of Bonds for $2,210,000?
- Assume Lyda Inc. sold bonds with a face value of P500,000 for P530,000. Was the market interest rate equal to or greater than the bonds’ contractual interest rate? What are the financial ratios used to analyze current liabilities and long-term liabilities?Gecko Investments has the following data regarding their debt investments as of December 31, 2021: Original Cost Amortized Cost Market Value Trading Bonds 95 96 97 Available for Sale Bonds 95 96 97 Held-to-Maturity Bonds 95 96 97 1. What is the total amount of gain or loss to be reported as part of other comprehensive income? Give both the amount and whether it is a gain or loss.Presented below are two independent cases related to available-for-sale debt investments. Case 1 Case 2 Amortized cost $40,000 $100,000 Fair value 30,000 110,000 Expected credit losses 25,000 92,000 For each case, determine the amount of impairment loss, if any.
- Th e management of Bank EZ repurchases its own bonds in the open market. Th ey pay€6.5 million for bonds with a face value of €10.0 million and a carrying value of €9.8 million. Th e bank will most likely report:A . other comprehensive income of €3.3 million.B . other comprehensive income of €3.5 million.C . a gain of €3.3 million on the income statement.Example 2) Fair value through profit or loss: Debt investment ABC Co. had the following transactions pertaining its trading investments: Feb. 1, 2021 Purchased $200,000 of 3-year, 6% bonds at 104. Interest is payable on each August 1 and February 1. Aug. 1, 2021 Received interest on the bonds. Dec. 31, 2021 The fair value of the bonds was 100. Instruction: Record the above transactions, using the fair value through profit or loss model. Also, prepare any required adjusting entry/entries at December 31, 2021. ABC Co. has a December 31 year-end.How much should be recorded as the purchase price of theindividual PPE items: 4. Issued bonds with face value of P5,000,000 and fair value ofP5,100,000 to purchase equipment with a fair value ofP4,900,000.
- Yale Co. purchased a bond on October 4 of the current year for $45,000 and classified it as available-for-sale. The market value of the investment at year-end is $42,000. What value will be reported in net income for the adjustment, if any? a. $42,000 b. $0 c. $(3,000) d. Not enough information is given to determine the amount included in net income.The face value of Ace Hardware Company's outstanding bonds is S400,000 and unamortized premium is $20,000. The company calls 50% of the outstanding bonds at a price of $205,000. What is the gain or loss on retirement of bonds?Irving Inc. sold bonds with a $50,000, 10% interest, and 10-year term at $52,000. What is the total amount of interest expense over the life of the bonds?
