On June 1, 2021, VIXEN Company received ₱1,077,200 plus accrued interest for 12% bonds with a face amount of ₱1,000,000. The bonds were sold to yield 10%. Interest is payable semiannually every July 1 and December 31. The entity elected the fair value option for measuring financial liabilities. On December 31, 2020, the fair value of the bonds is at 108. The change in the fair value of the bonds is attributable to market factors. Requirements: E. Prepare all necessary entries for the calendar year 2021. F. How much is the initial valuation of the bonds? G. How much cash was received upon the sale of the bonds?

Q: On April 30, Kate Company issued 7,000 of 15% ₱1,000 bonds at 95. The bonds have a five-year term…

A: Bond Issued = 7,000 Bond issue cost = ₱125,000 Face Value = ₱1,000 Coupon rate = 15% Time period = 5…

Q: How much is initial valuation of the bonds? How much cash was received upon the sale of the bonds?…

A: Accrued  Interest can be defined in simple terms as an interest which has been occurred at a…

Q: On January 1, 2020, Latvia Company issued 3-year bonds with face amount of 5,000,000 at 98.…

A: Effective interest method is method used to recognise the interest expense for the year, when…

Q: On January 1, 2020, Latvia Company issued 3-year bonds with face amount of 5,000,000 at 98.…

A: On 01.01.2020, Latvia Company's Issued 3 years bonds with face value = 5000000 Issued price = 98…

Q: On June 1, 2021, NEX Company received ₱1,077,200 plus accrued interest for 12% bonds with face…

A: "Since you have asked multiple question we will solve the first three sub part question for you.  If…

Q: On April 30, CHIA-SEED Company issued 7,000 of 15% ₱1,000 bonds at 95. The bonds have a five-year…

A: To find the interest expenses of bond, we first need to calculate the yield or ytm of bond, which…

Q: On January 1, 2021, NFB Visual Aids issued $800,000 of its 20-year, 8% bonds. The bonds were priced…

A: 1.

Q: On January 1, 2020, Sheridan Company sold to Carla Vista Co. $780000 of its 8% bonds for $690531 to…

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

Q: On January 1, 2021, Nicks Company reported 10% bonds payable with carrying amount of P5,700,000. The…

A: The financial instruments can be recorded at fair or amortized value depending upon the accounting…

Q: On June 1, 2021, VIXEN Company received ₱1,077,200 plus accrued interest for 12% bonds with face…

A: Bonds Payable It is the amount owed to bond holders by the issuer and is a liability account

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

A: Fair Price of the bonds on December 31, 2020 = Present value of principal + Present value of…

Q: On January 1, 2021, RANCY Company received ₱107,720 for a ₱100,000 face amount, 12% bond, a price…

A: Semiannual interest payment = face value of bonds x rate of interest x 6/12 = 100000*12%*6/12 =…

Q: On May 31, 2020, VIOLET Company issued 6% bonds with face amount of ₱4,000,000 for net proceeds of…

A: Solution  carrying amount of the bonds payable on December 31, 2020 = Fair value of bond on December…

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: n January 1, 2020, Mariel Company issued bonds payable with face amount of P8,000,000 and 10% stated…

A: When bond trades or the market price of the bond is below $1000 or par value it is called a discount…

Q: Required: 1-a. Determine the price of the bonds at January 1, 2024. 1-b to 4. Prepare the necessary…

A: Issue price$650,000Interest rate10%Market Interest rate12%Interest per period…

Q: SEED Company

A: At The Chia Co we tend to area unit captivated with positive plant primarily based nutrition. Our…

Q: On January 1, 2020, Trisha Company received P1,077,200 for 12% bonds with face amount of P1,000,000.…

A: Bond is borrowing security issued by the company to raise funds from the market by making an…

Q: On January 1, 2020, RED Company purchased 12% bonds with face amount of ₱5,000,000 for ₱5,500,000…

A: The question is multiple choice question. On January 1, 2020, RED Company purchased 12% bonds with…

Q: On January 1, 2024, NFB Visual Aids issued $900,000 of its 20-year, 6% bonds. The bonds were priced…

A: Journalizing is one of the most important and basic steps in the accounting cycle. Journalizing is…

Q: On January 1, 2021, Lh Company was authorized to issue 12% bonds with a face amount of ₱5,000,000.…

A:

Q: On May 31, 2020, BLUE Company issued 6% bonds with face amount of ₱4,000,000 for net proceeds of…

A: INTEREST EXPENSE IS THE COST INCURRED BY AN ENTITY FOR THE BORROWED FUNDS .

Q: On May 31, 2020, BLUE Company issued 6% bonds with face amount of ₱4,000,000 for net proceeds of…

A: Period Interest Payment Interest Expense Discount Amortization Bond Amortized Cost May 31, 2020…

Q: Unrealized holding gain/(loss) in OCI for year 2014 2. Interest expense for the year ended December…

A: Unrealized holding gain/(loss) is the term used to describe a change in an investment's value that…

Q: On January 1, 2016, Star Company received P107,720 for a P100,000 face amount, 12% bond, a price…

A: One of the source used by the business entities to meet their financial requirements is issue of…

Q: On January 1, 2019, ZZZ Company purchased bonds with face amount of P5,000000. The entity paid…

A:

Q: On January 1, 2020, Garland Company purchased bonds with a face amount of P8,000,000 for P7,679,000…

A: Investment is recognized at fair value and that value of the investment is increased by the interest…

Q: ANSWER IN GOOD ACCOUNTING FORM. THANK YOU :) On April 30, CHIA-SEED Company issued 7,000 of 15%…

A: A bond can be defined as a fixed income instrument. It represents a loan made by an investor to a…

Q: On May 31, 2020, VIOLET Company issued 6% bonds with face amount of ₱4,000,000 for net proceeds of…

A: A bond is an instrument that represents the loan that is made by the investor to the company and…

Q: On June 1, 2021, VIXEN Company received P1,077,200 plus accrued interest for 122 bands with face…

A: Accrued Interest is a type of interest which is calculated on the last day of Accounting Period. A…

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

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

Q: On October 1, 2021, Best Company purchased as debt investments at fair value through profit or loss,…

A: Accrued interest is one of the current asset being held by the business. This means interest revenue…

Q: On April 30, Petrol Company issued 7,000 of 15% ₱1,000 bonds at 95. The bonds have a five-year term…

A: SOLUTION- BOND IS A WRITTEN AGREEMENT OR CONTRACT BETWEEN AN ISSUER AND THE HOLDER THAT REQUIRES THE…

Q: On March 1, 2021, Navy Corporation used excess cash to purchase U.S. Treasury bonds for $103,000…

A: U.S. Treasury bonds are debt securities issued by the United States Department of the Treasury to…

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 June 1, 2021, VIXEN Company received P1,077,200 plus accrued interest for 12% bonds with face…

A: Once a bond is issued at a premium, the amount will be amortized over the years through to its…