On January 1, 2020, Flexible Company acquired for P 1,1,50,000 the entire P 1,000,000 12% bond issue of another entity to be held as financial asset at amortized cost. Bonds of P 200,000 mature at annual interval beginning December 31, 2020. Interest is payable semi-annually on June 30 and December 31. REQUIRED: 1. Prepare the schedule of amortization following the bond outstanding method. 2. Prepare journal entries for 2020, and 2021

Q: On April 1, 2020, Lucky Corp. purchased P1,000,000 face amount 12% bonds at 94. Bonds pay interest…

A: Bonds represent the loan for the company on which a percentage of interest has to be paid by the…

Q: tries for HTM Debt Securities— Effective Interest Method On July 1, 2020, West Company purchased…

A: d.   Effect of investment:

Q: Chowan Corporation issued $198,000 of 8% bonds dated January 1, 2019, for $191,470.07 on January 1,…

A: Discount on bonds payable is first calculated which is the difference of Bonds par value and the…

Q: On January 1, 2019, AB Company purchased P1,000,000, 12% bonds of C Company for a price that yields…

A: Debt Investment: It is fixed-interest generating securities  to earn a steady interest income and…

Q: On January 1, 2021, BEZOS COMPANY acquired 10%, 3-year bonds with face value of $ 2,000,000.…

A: Equity instruments: fair value through profit or loss (FVPL): Assets (FVPL) are recorded at fair…

Q: On July 1, 2020, West Company purchased for cash, three $10,000 bonds of North Corporation to yield…

A: Available for Sale (AFS): When investments are made in securities with an intention to make profit…

Q: On January 1, 2019, La Vida Company purchased 3,000, P1,000 face value term bonds with a stated rate…

A: Reclassification is when business entity changed business model for managing its financial assets.…

Q: Assuming the investment is appropriately recognized as financial assets at amortized cost: How much…

A: A bond is a kind of debt financial instrument that is being issued by corporations and the…

Q: On July 1, 2020, West Company purchased for cash, three $10,000 bonds of North Corporation to yield…

A: Face value of bond $30,000.00 Coupon rate 6% Effective interest rate 10.00% Years to maturity…

Q: On April 1, 2020, Boston Company issued at 99 plus accrued interest 2,000 of 8% P1,000 face value…

A: A bond is said to be issued at discount when its price is less than its face value. On the other…

Q: Recording Entries for HTM Debt Securities— Effective Interest Method On July 1, 2020, West…

A: HTM Securities: When investments are made in securities with an intent to held until the maturity,…

Q: Recording Entries for HTM Debt Securities— Effective Interest Method On July 1, 2020, West Company…

A: Amortization of Discounts on Bonds Payable: When a bond is sold at a discount, the amount of the…

Q: On January 1, 2019, Lynch Company acquired 13% bonds with a face value of $50,000. The bonds pay…

A: Bond meaning:- An IOU-like debt security called a bond. Bonds are issued by the borrowers to attract…

Q: n January 1, 2020, Ehrlich Corporation issued 7%, 15-year bonds with a face amount of $900,000 at…

A: The bonds are the financial instruments that are issued to raise money from the market or investors.…

Q: [The following information applies to the questions displayed below.] On January 1, 2021, Universe…

A: The schedule is especially important for loans such as mortgages, auto loans, and other installment…

Q: at 95. T

A: The journal entries and bonds payable as,

Q: On January 1, 2019, DB Company purchase 9% bonds in the face amount of P6,000,000. The bonds mature…

A: Unrealized gain on investments: A prospective profit that exists on paper as a consequence of…

Q: On January 1, 2019, Rodgers Company purchased $200,000 face value, 10%, 3-year bonds for…

A: Bond is financial instrument which generates interest. Bonds also known as fixed income instruments.…

Q: Sheridan Corporation issued $460,000, 9%, 20-year bonds on January 1, 2020, for $420,837. This price…

A: Journal Entry: It is a systematic record of a financial transaction recorded in chronological order.

Q: On January 1, 2019, Lynch Company acquired 13% bonds with a face value of $50,000. The bonds pay…

A: Answer:-  Bond meaning:- An IOU-like debt security called a bond. Bonds are issued by the borrowers…

Q: On January 1, 2019, Salt Mine Corporation purchased at par 8% bonds having a maturity value of…

A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from…

Q: Recording Entries for AFS Debt Securities- Effective Interest Method Adjust FVA at Sale and Year-End…

A: Journal entry: It is prepared to record the financial and non financial transaction of the business…

Q: Dixon Corp issued 5,000, 9%, 5-year, P1,000 bonds dated January 1, 2020, at P100 1. Prepare the…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: MISM On January 2, 2020, Mark Company acquired, as a held-to-maturity investment, bonds with a face…

A: Bond :— It is one of the type of securities that pays fixed periodic interest and face value amount…

Q: Polk Incorporated issued $200,000 of 13% bonds on July 1, 2019, for $206,801.60. The bonds were…

A: The following computations are done for Polk Incorporation.

Q: On July 1, 2020, West Company purchased for cash, ten $10,000 bonds of North Corporation to yield…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: On January 1, 2020, Ehrlich Corporation issued 7%, 15-year bonds with a face amount of $5,000,000 .…

A: The bonds are the financial instruments that are issued to raise money from the market or investors.…

Q: Lasa Corporation issued 5,000, 9%, 5-year, RM1,000 bonds dated January 1, 2020, at 100 (a) Prepare…

A: Journal entries are accounting transactions used to record various accounting transactions in the…

Q: On J anuary 1, 2019, kelly Corporation acquired bonds wiili a face value of $500,000 for $483841.79,…

A: A journal entry is the technique through which a firm records every individual financial…

Q: Net Work Corporation, whose annual accounting period ends on December 31, issued the following…

A: Bonds payable are one of the sources of finance and are shown as liability. If the interest rate is…

Q: On October 1, 2020 Waterway Industries issued 6%, 10-year bonds with a face value of $8150000 at…

A: Bond is a fixed income instrument which shows a loan made by investor to borrower.

Q: On January 1, 2020, Alaska Corporation purchased P1,000,000 10% bonds for P1,051,510 (including…

A: Interest paid=Value of bonds×10%=P 1,000,000×10%=P 100,000

Q: Instructions On January 2, 2020, Mark Company acquired, as a held-to-maturity investment, bonds with…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: On 1 January 2021, Fortune Forever Limited (FF) purchased $500,000, 10% bonds with a maturity of 10…

A:

Q: Recording Entries for HTM Debt Securities— Effective Interest Method On July 1, 2020, West Company…

A: Journal entries refers to the systematic documentation of the financial transactions of a company in…

Q: On January 1, 20x1, SENECTITUDE OLD AGE Co. issued its 12%, 3-year, P2,000,000 convertible bonds at…

A: Issue date= Jan 1, 20X112% convertible bonds at 110Conversion ratio= 1 bond= 8 shares

Q: On August 1, 2021, Crane Company acquired 1310, $1000, 9% bonds at 97 plus accrued interest. The…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: Krause Corporation issued $2,600,000​, 10​-year, 5​% bonds for $2,470,000 on January​ 1, 2019.…

A: Amortization is defined as the technique used to  lower the book value of the intangible asset…

Q: The Bridgeport Company issued $230,000 of 13% bonds on January 1, 2020. The bonds are due January 1,…

A: Journal entry is the act of keeping records of transactions in an accounting journal. An accounting…

Q: On May 1, 2021, Bramble Corp. purchased $1,580,000 of 12% bonds, interest payable on January 1 and…

A: Bonds are considered a financial instrument used to raise finance for the organization. It is also…

Q: 2. On January 1, 2020, Novatpa Company purchased $1,000,000, 6% bonds of Aguirre Co. for $947,574.…

A: Here discuss about the details of the valuation of bond with the amortization of discount which are…