On January 1, 2020, HIBISCUS Company purchased 4,000 of ₱1,000 face value, 10% bonds of IXORA Company for ₱4,270,600.
Q: On January 1, 2021, Illuminati Company purchased 10% bonds with a face amount of P3,000,000. The…
A: Formulas that are used:-
Q: On January 1, 2018, an entity purchased bonds with face amount of P5,000,000. The entity paid…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: On January 1, 2019, ZZZ Company purchased bonds with face amount of P5,000000. The entity paid…
A: Bonds refers to the financial instrument issued in the market to collect the funds. Interest is paid…
Q: Sycamore will record interest revenue in 2022 of?
A: Interest = 92278*0.10/2 - 100000*0.08/2 =P614
Q: On January 1, 2020, Dumaguete Company purchased bonds with face amount of P4,000,000 for P4,206,000.…
A: ANSWER The business model is to hold the asset until redemption, but sales may be made to invest…
Q: On January 1, 2019, Peter Corporation purchased a debt instrument at its face value of P3,000,000.…
A: Reclassification of Debt Instrument As a result debt securities may be reclassified from the…
Q: An entity purchased 4-year debt instruments with a face value of P10,000,000 on January 1, 2019 to…
A: Note:- Since you have posted a question with multiple sub-parts, we will solve the first three…
Q: On January 1, 2020, HIBISCUS Company purchased 4,000 of P1,000 face value, 10% bonds of IXORA…
A: Amortization of loan is a schedule that depicts the periodic payments on the loan amount taken by…
Q: 9. On January 1, 2020, HIBISCUS Company purchased 4,000 of P1,000 face value, 10% bonds of IXORA…
A: Bonds are the debt security which is offered or issued by the corporates or the governments to…
Q: On June 30, 2021, ABC Corp. purchased a P3,000,000 face value bonds with P2,925,067.05 cash. The…
A: Journal: It is the first step of recording financial transactions. It is used to prepare the…
Q: Feherty, Inc., accounts for its investments under IFRS No. 9 and purchased the following investments…
A: 1. Feherty Inc. bought 200 bonds of Donald Company, from the 200 bonds, 80 were held as amortized…
Q: On January 1, 2020, Blue Company purchased P500,000 8% bonds for P475,126 (including broker's…
A: Discount on company’s bonds = 500000-475126= 24874 interest =8% x 500000 = 40000 interest income at…
Q: On May 1, 2020, GAL Co. purchased a short-term P2,000,000 face value, 9% debt instruments for…
A: Debt instruments: It is the instrument issued by the company to take loan. Under this instrument…
Q: January 1, 2020, Blue Company purchased P500,000 8% bonds for P475,126 (including broker’s…
A: Solution Given Face value 500000 Coupon rate 8% Issue price 475126 Life of…
Q: On January 1, 2020, Blue Company purchased P500,000 8% bonds for P475,126 (including broker’s…
A: Year Cash flows (I) pvf @9% (II) (I)*(II) 2020 40000 0.9174 36696 2021 40000 0.8417 33668 2022…
Q: On Jan. 1, 2021, ABC paid P3,050,000 for a serial bond that has a face value of P3,000,000, term of…
A: Journal entries Dec. 31, 2021 Bank(3000000 * .09) Dr. 270000 Interest income(3050000 * .08) Cr…
Q: On January 1, 2017, KLM Company purchased bonds with face amount of 5,000,000. The entity paid…
A: GIVEN On January 1, 2017, KLM Company purchased bonds with faceamount of 5,000,000. The entity…
Q: On January 1, 2020, Andrea Company purchased bonds with face value of P8,000,000 for P7,679,000. The…
A: The amortization of bond is to be done in order to pay down the principal on debt regularly in…
Q: On January 1, 2022, BTS Company purchased 3,000, P1,000 face value term bons with a stated rate of…
A:
Q: anuary 1, 2020, Blue Company purchased P500,000 8% bonds for P475,126 (including broker’s commission…
A: The comprehensive statement income includes all those unrealized income or losses which can not be…
Q: On January 1, 2021, Illuminati Company purchased 10% bonds with a face amount of P3,000,000. The…
A: Bond Valuation Bond can be valued either in par value or in discount or in premium as well. The…
Q: Haiti Company purchased 5,000 bonds per ₱1,000 face amount, 10% bonds to yield 12%. The carrying…
A: The gain amount which an investor will get after buying a bond is the function of the purchase…
Q: On January 1, 2021, BEZOS COMPANY acquired 10%, 3-year bonds with face value of $ 2,000,000.…
A: Given data, Face value of Bond=$2,000,000 Coupon rate=10% Market rate=8%
Q: On October 1, 2021, Shane Company issued 5,000 of the P1,000 face value, 12% bonds at 110 including…
A: The main purpose of bon issuance by the company is to raise capital or money from the outside.Bonds…
Q: On October 1, 2022, Milk Tea Company purchased a debt security having a face value of P3,000,000…
A: In case of investment in debt security is measured at FVTOCI ,initially the investment should…
Q: On January 1, 2020, HIBISCUS Company purchased 4,000 of ₱1,000 face value, 10% bonds of IXORA…
A: The coupon interest rate is always paid on the face value of the bonds and is independent of the…
Q: On January 1, 2019, ZZZ Company purchased bonds with face amount of P5,000000. The entity paid…
A:
Q: On January 1, 2020, Blue Company purchased P500,000 8% bonds for P475,126 (including broker’s…
A: Given as, Face value 500000 Coupon rate 8% Issue price 475126 Life of bond 3…
Q: On May 1, 2020, GAL Co. purchased a short-term P2,000,000 face value, 9% debt instruments for…
A: Income statement: The financial statement which reports revenues and expenses from business…
Q: January 1, 2020, Blue Company purchased P500,000 8% bonds for P475,126 (including broker's…
A: A financial asset is an asset, the value of which is extracted from a contractual obligation.…
Q: . On January 1, 2020, HIBISCUS Company purchased 4,000 of ₱1,000 face value, 10% bonds of IXORA…
A: Given Data: Face value of bonds = 4,000 bonds at ₱ 1,000 Par value = ₱ 4,000,000 Carrying value of…
Q: On January 1, 2019, Davao de Oro Company purchased bonds with a face amount of P5,000,000. The…
A: Bond amortization schedule (effective interest…
Q: n January 1, 2020, Blue Company purchased P500,000 8% bonds for P475,126 (including broker's…
A: Solution Given Face value 500000 Coupon rate 8% Issue price 475126 Life of…
Q: On January 1, 2019, ZZZ Company purchased bonds with face amount of P5,000000. The entity paid…
A: SOLUTION- Bonds refers to the financial instrument issued in the market to collect the funds.…
Q: On January 1, 2020, Liam Company purchased bonds with face amount of P10,000,000 for P10,515,000.…
A: Bonds Face amount = P 10000000 Cash paid for bonds = P 10515000 December 31 , 2020 bonds are quoted…
Q: On January 1, 2021, Illuminati Company purchased 10% bonds with a face amount of P3,000,000. Th…
A: Computation of carrying amount of bonds on december 31,2022: Amount Interest income Interest…
Q: On January 1, 2019, Rio Company 3 points purchased 4,000 of P1,000 face value, 10% bonds of Flamingo…
A: The entity needs to recognize their financial instrument at fair value and interest is recognized in…
Q: On January 1, 2019, Davao de Oro Company purchased bonds with a face amount of P5,000,000. The…
A: On 01.01.2019, Davao de Oro company purchased bonds of face amount = P5000000 Entity paid = P4600000…
Q: On May 1, 2020, GAL Co. purchased a short-term P2,000,000 face value, 9% debt instruments for…
A: The recognized net income is income that is received to the organization and the net income as…
Q: On January 1, 2020, Soledad Company purchased 10% bonds with face amount of P3,000,000. The bonds…
A: NOTE : As per BARTLEBY guidelines, when multiple questions are given, then first question is to be…
Q: On January 1, 2020, Blue Company purchased P500,000 8% bonds for P475,126 (including broker's…
A: Fair value of the Bond = P500,000 Financial asset in our question is measured at FVTPL. Any change…
Q: On October 1, 2021, Neon Company purchased a P2,000,000 face value 10% debt instrument paying a…
A: A profit and loss financial statement that illustrates a company's revenue and spending over a…
Q: On January 1, 2020, Ye Company purchased 8% bonds in the face amount of P4,000,000. The bonds mature…
A: If the entity changes their classification from FVOCI to FVTPL then the unrealized gain/ loss are…
Q: nds is 9% on December 31, 2020. Round off present value factors to four (4). decimal places and…
A: The answer has been mentioned below.
Q: On January 1, 2019, ZZZ Company purchased bonds with face amount of P5,000000. The entity paid…
A:
Q: uming that the compan
A: As per protocol, allowed to answer first question and post the remaining in the next submission.
Q: On May 1, 2020, Girl Co. purchased a short-term P2,000,000 face value, 9% debt instruments for…
A: Recognized income=Selling price-Purchase price
Q: On January 1, 2020, Blue Company purchased P500,000 8% bonds for P475,126 (including broker's…
A: Working note: Computation of effective rate of interest:
Q: On January 1, 2021, JAPAN COMPANY purchased 12% bonds with face amount of $ 5,000,000 for $…
A:
On January 1, 2020, HIBISCUS Company purchased 4,000 of ₱1,000 face
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
- On January 1, 2020, JASMINE Company purchased 4,000 of ₱1,000 face value, 10% bonds of IXORA Company for ₱4,270,600. The bonds will mature on January 1, 2025 and pay interest semi-annually on January 1 and July 1. Bonds effective interest rate is 8%. JASMINE has a business model of collecting all the contractural cash flows related to the instrument. How much should JASMINE report as interest income for the year ended December 31, 2020 on the bonds?On January 1, 2020, HIBISCUS Company purchased 4,000 of ₱1,000 face value, 10% bonds of IXORA Company for ₱4,270,600. The bonds will mature on January 1, 2025 and pay interest semi-annually on January 1 and July 1. Bonds effective interest rate is 8%. HIBISCUS has a business model of collecting all the contractural cash flows related to the instrument. How much should HIBISCUS report as interest income on the bonds?9. On January 1, 2020, HIBISCUS Company purchased 4,000 of ₱1,000 face value, 10% bonds of IXORA Company for ₱4,270,600. The bonds will mature on January 1, 2025 and pay interest semi-annually on January 1 and July 1. Bonds effective interest rate is 8%. HIBISCUS has a business model of collecting all the contractural cash flows related to the instrument. How much should HIBISCUS report as interest income on the bonds? A. ₱ 160,000B. ₱ 169,657C. ₱ 170,824D. ₱ 340,481
- On January 1, 2020, Hilichurl Company purchased 4,000 of P1,000 face value, 10% bonds of Ivory Company for P4,270.600. The bonds will mature on January 1, 2025 and pay interest semi-annually on January 1 and July 1. Bonds effective interest rate is 8%. Hilichurl has a business model of collecting all the contractural cash flows related to the instrument. How much should Hilichurl report as interest income on the bonds?Show the solution in good accounting form. On January 1, 2020, HIBISCUS Company purchased 4,000 of P1,000 face value, 10% bonds of IXORA Company for 24,270,600. The bonds will mature on January 1, 2025 and pay interest semi-annually on January 1 and July 1. Bonds effective interest rate is 8%. HIBISCUS has a business model of collecting all the contractural cash flows related to the instrument. How much should HIBISCUS report as interest income on the bonds in the year 2020?On January 1, 2018, an entity purchased bonds with face amount of P5,000,000. The entity paid P4,500,000 plus transaction cost of P168,600. The bonds mature on December 31, 2020 and pay 6% interest annually on December 31 of each year with 8% effective yield. The bonds were quoted at 105 on December 31, 2018 and 110 on December 31, 2019.The business model in managing the financial asset is to collect contractual cash flows that are solely payments of principal and interest and also to sell the bonds in the open market. The entity has not elected the fair value option. On December 31, 2019, the entity changed its business model to collect only contractual cash flows. On December 31, 2020, the bonds are quoted at 115 and the market interest rate is 10%. find the following: 1. What amount of unrealized gain should be reported as component of OCI in the statement of comprehensive income for 2018? 2. What amount of unrealized gain should be reported as component of OCI in the statement of…
- On January 1, 2019, LEMON Company purchased bonds with face amount of ₱6,000,000 for ₱6,309,000. The business model of the entity in managing the financial asset is to collect contractual cash flows that are solely payment of principal and interest and also to sell the bonds in the open market. The bonds mature on December 31, 2021 and pay 10% interest annually on December 31 each year with 8% effective yield. The bonds are quoted at 95 and 90 on December 31, 2019 and December 31, 2020, respectively. What amount of cumulative unrealized gain or loss should be reported in the statement of financial position on December 31, 2020? (If loss, put a negative sign before the numerical answer)9. On January 1, 2020, HIBISCUS Company purchased 4,000 of ₱1,000 face value, 10% bonds of IXORA Company for ₱4,270,600. The bonds will mature on January 1, 2025, and pay interest semi-annually on January 1 and July 1. Bond's effective interest rate is 8%. HIBISCUS has a business model of collecting all the contractual cash flows related to the instrument. How much should HIBISCUS report as interest income for the year ended December 31, 2020, on the bonds? * PLEASE SHOW YOUR SOLUTIONS IN GOOD ACCOUNTING FORM. THANK YOU!1. On March 1, 2019, Company B issued $1,000,000, 10 yeara, 12% bonda at 103 excluding accrued interest. The bonds are dated January 1, 2019 and will mature on January 1, 2029. The interest is payable semi-annually on January 1 and July 1 of each year. Company B paid transaction costs amounting to $50,000. How much would be the net cash receipts of Company B as a result of the bond issuance? $1,000,000 $1,030,000 $980,000 $1,050,000 O O O O
- On January 1, 2019, Davao de Oro Company purchased bonds with a face amount of P5,000,000. The entity paid P4,600,000 plus a transaction cost of P142,000 for the bond investment. The business model of the entity in managing the financial asset is to collect contractual cash flows that are solely payment of principal and interest and also to sell the bonds in the open market. The bonds mature on December 31, 2021 and pay 6% interest annually on December 31 each year with 8% effective yield. The bonds are quoted at 105 on December 31, 2019 and 110 on December 31, 2020. The bonds are redeemed at face amount on December 31, 2021. Required: 1. Assuming that half of the bonds were sold on July 1, 2020 with accrued interest, provide the following: A. Journal entries for the year 2020. B. Compute the gain or loss on sale from selling the bonds. C. Continue the amortization from selling date until maturity date.On January 1, 2019, Davao de Oro Company purchased bonds with a face amount of P5,000,000. The entity paid P4,600,000 plus a transaction cost of P142,000 for the bond investment. The business model of the entity in managing the financial asset is to collect contractual cash flows that are solely payment of principal and interest and also to sell the bonds in the open market. The bonds mature on December 31, 2021 and pay 6% interest annually on December 31 each year with 8% effective yield. The bonds are quoted at 105 on December 31, 2019 and 110 on December 31, 2020. The bonds are redeemed at face amount on December 31, 2021. Required: 1. Prepare an amortization table for the discount. 2. Assuming that half of the bonds were sold on July 1, 2020 with accrued interest, provide the following: A. Journal entries for the year 2020. B. Compute the gain or loss on sale from selling the bonds. C. Continue the amortization from selling date until maturity date.On January 1, 2021, PHILIPPINE COMPANY acquired 5-year, 15%, $8,000,000 H-bonds. The investments were acquired at aprice to yield 14%. Interest is payable annually on December 31 starting December 31, 2021. PHILIPPINES' business model isto hold the financial assets to collect contractual cash flows. QUESTION:a. Determine the initial measurement of H-bonds on January 1, 2021.b. Prepare a schedule of amortization using the effective interest method. Use the following columns:DateInterestCollectionInterestIncomeAmortizationPresent Valuec. Prepare all journal entries for 2021 and 2022 applicable to this transaction.
