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?

Q: On January 1, 2020, Aguilar Corporation purchased bonds with a face value of P4,000,000 for…

A: NOTE : As per BARTLEBY guidelines, when multiple questions are given then first question is to be…

Q: On January 1, 2018, CHE Co. purchased 12% bonds, having a maturity value of P800,000, for P860,652…

A:

Q: On January 1, 2020, Fishbone corporation purchased 300 of the $1000 face value, 9%, 10 year bonds of…

A: Bonds are considered to be debt of company for which it needs to pay regular interest to the…

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 April 30,2020, ABC Corp. purchased bonds with a face value of P1,400,000 and interest rate of 9%…

A: On 30.04.2020, ABC Corp purchased bonds with face value = P1400000 Interest rate = 9% Which is…

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: 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 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: 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: interest inco

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: 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 May 1, 2019, Orlan Company purchased a short-term $2,000,000 face value, 9% debt instruments for…

A: Income statement refers to those financial statements which depicts the revenues and expenses of a…

Q: Described below are certain transactions of Jeno Corporation during 2022.  1. On April 1, the…

A: The process of accounting consists of a set of activities that pertain to the recording of every…

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: Fowler Inc. purchased $75,000 of bonds on January 1, 2018. The bonds pay interest semiannually and…

A: Debt investments: The financial instruments which are bought by investors, or corporations, or…

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, CullumberCorporation purchased 335 of the $1,000 face value, 6%, 10-year bonds…

A: Bonds represent high-security financial products that allow a company to acquire money and meet…

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, 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: What amount should Dayrit report as interest receivable in its December 31, 2022 balance sheet?

A: Interest receivable on the bond is the amount of interest which has been computed on the basis of…

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 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 Jan. 1, 2021, ABC purchased bonds for the purpose of both collecting the contractual cash flows…

A: Given: ABC purchased bonds based on the purpose of both that includes the contractual cash flows…

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 January 1, 2019, LEMON Company purchased bonds with face amount of ₱6,000,000 for ₱6,309,000. The…

A: Carrying value of bond = present value of all cashflows  Bond will mature December 31st, 2021 hence,…

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: On January 1, 2020, HIBISCUS Company purchased 4,000 of ₱1,000 face value, 10% bonds of IXORA…

A: Bond Bond is a source of finance issued by the firm to raise money. It has a fixed Interest rate…

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 January 1, 2021, All-Good Company purchased a bond with face amount of P3,000,000 for P2,500,000…

A: Discount on bonds purchased = Face value of bonds - price paid = 3000000 - 2500000 = P500,000

Q: On January 1, 2021, JAPAN COMPANY purchased 12% bonds with face amount of $ 5,000,000 for $…

A:

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.