Identify: Investment in Bonds as of acquisition Interest income for the year Unrealized Holding Gain/Loss through P/L for year 2021
Identify: Investment in Bonds as of acquisition Interest income for the year Unrealized Holding Gain/Loss through P/L for year 2021
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
On Jan. 1, 2021, ABC bought serial bonds with a face value of
P2,400,000 for P2,160,000 cash. The investment will be accounted
for as a financial asset at amortized cost. It will be paid in
installments of P800,000 plus 10% interest on the outstanding
balance every Dec. 31, 2021. On Dec. 31, 2021, the remaining bonds
have a fair value of PP1,550,000.
Identify:
Investment in Bonds as of acquisition
Interest income for the year
Unrealized Holding Gain/Loss through P/L for year 2021
Investment in Bonds as of Dec. 31, 2021
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