On August 1, 2021, Crane Company acquired 1310, $1000, 9% bonds at 97 plus accrued interest. The bonds were dated May 1, 2018, and mature on April 30, 2027, with interest paid each October 31 and April 30. The bonds will be added to Crane’s available-for-sale portfolio. The preferred entry to record the purchase of the bonds on August 1, 2021 is a. Debt Investments 1310000   Interest Revenue 29475         Discount on Debt Investments 39300       Cash   1300175 b. Debt Investments 1300175

Q: July 1, 2019, Jelli&Tin Company purchased P500,00 face value Red Cup Company 8% bonds for P455,000…

A: SOLUTION LOSS ON SALE ON SECURITY IN 2020 = ACCRUED INTEREST UPTO FEB 1 2020 Is 1.5 MONTHS. =…

Q: How much will be the gain (loss) on sale assuming all the bonds were sold on June 30,2020 at 99 plus…

A: Calculating carrying value of the bond on June 30, 2020. Year Beginning carrying value of bond…

Q: On January 1, 2021, Demeanor Company purchased bonds with face amount of P5,000,000 to be held as…

A: Bond is an investment security which provides a fixed interest income to the bondholders. The…

Q: On September 1, 2021, Howell Company purchased 600 of the P1,000 face value, 9% bonds of Ramsey,…

A: The bonds purchased for non trading are recorded as investment in the balance sheet. The difference…

Q: Carow Corporation purchased on January 1, 2020, as a held-to-maturity investment, $60,000 of the 8%,…

A: When effective interest method is used, the interest expenses are computed based on effective…

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, 2018, lab Co. acquired P4,000,000 of 12% face value bonds at P3,767,000 to be held…

A: Face value of bond, on January 1, 2018 = P 4,000,000 Carrying value of bond on January 1, 2018 = P…

Q: On January 1, 2019, Mark Corporation purchased bonds with a face value of $500,000 for…

A: Each journal entry comprises details about a specific business deal, such as the date, the sum to be…

Q: On April 1, 2020, Purefoods Company purchased a P1,000,000 face value 8% bond for P910,000 including…

A: Carrying amount of bond investment = Total consideration paid - accrued interest = P910,000 - 20000…

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

A: The answer is given below. Explanation: At the end of year on 31st December 2021 company record the…

Q: On June 1, 2019, Garnett Company purchased as held for collection securities 8,000 of the P1,000…

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

Q: On April 1, 2020, Purefoods Company purchased a P1,000,000 face value 8% bond for P910,000 including…

A: Carrying amount of bond investment = Total consideration paid - commission - accrued interest =…

Q: On July 1, 2019, SIMP Company purchased P500,00 face value DRIP Company 8% bonds for P455,000 plus…

A: GIVEN   On July 1, 2019, SIMP Company purchased P500,00 face value DRIP Company 8% bonds for…

Q: On January 1, 2019, Odeng Company purchased P1,000,000, 12% bonds of Myeongdong Company for P1,063,…

A: The bond is an investment security which are issued by the large organisation in order to raise…

Q: On January 1, 2019, Weaver Company purchased as held-to-maturity debt securities $500,000 face value…

A: The term "debt securities" can refer to a range of financial products that contain a commitment from…

Q: An investor company purchased $716,000 of 4% bonds from the investee company on January 1, 2020,…

A: When the corporation buys securities with the intention to resell them or not hold them till…

Q: On April 1, 2020, Purefoods Company purchased a P1,000,000 face value 8% bond for P910,000 including…

A: The answer is given below:

Q: On January 1, 2020, Metlock Company acquires $110,000 of Spiderman Products, Inc., 9% bonds at a…

A: The question is based on the concept of Financial Accounting.

Q: On January 1, 2020, Lucas Company purchased P1,200,000, 14% bonds of Andres Company for P1,381,934,…

A: Ending balance of Bond Investment = Beginning Balance + Interest Accrued at Effective rate -…

Q: An investor company purchased $790,000 of 5% bonds from the investee company on January 1, 2020,…

A: An available for sale securities is a security that do not fall under either the trading securities…

Q: On January 1, 2019, Hyde Corporation purchased bonds with a face value of $300,000 for $308,373.53.…

A: A Journal entry is a record of business transactions in the accounting system for an organisation.…

Q: On January 1, 2018, LAB Co. acquired P4,000,000 of 12% face value bonds at P3,767,000 to be held…

A: If a company buys a financial instrument for $150,000 that has a face amount of $200,000 and which…

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 April 1, 2020, Purefoods Company purchased a P1,000,000 face value 8% bond for P910,000 including…

A: Solution: Purchase cost of bonds = Purchase price - Accrued interest = P910,000 -…

Q: On April 1, 2020, Purefoods Company purchased a P1,000,000 face value 8% bond for P910,000 including…

A: Working note: Computation of carrying amount of bonds investment on April 1, 2020:

Q: On April 1, 2020, Q2 Company purchased a P1,000,000 face value 8% bond for P910,000 including…

A: Gain on Sale of Investment = Sale Proceeds - Carrying Amount

Q: On April 1, 2020, Purefoods Company purchased a P1,000,000 face value 8% bond for P910,000 including…

A: Formula: Gain on sale of bonds = Sale value - fair value of bonds

Q: "Oh January 1, 2019, TYP Company purchased P1,200,000, 14% bonds of PSY Company for P1,352,143, a…

A: Answer : Option d - Answer not given

Q: On April 1, 2020, Purefoods Company purchased a P1,000,000 face value 8% bond for P910,000 including…

A: Interest accrued on April 1, 2020 =  face value of bonds x rate of interest x no. of months/12 =…

Q: An investor company purchased $491,000 of 8% bonds from the investee company on January 1, 2020,…

A: Particulars Amount Cost of Bond Investment on Jan.1,2020 $755470 Add: Amortization of Discount…

Q: On April 1, 2020, Purefoods Company purchased a P1,000,000 face value 8% bond for P910,000 including…

A: Interest accrued on April 1, 2020 =  face value of bonds x rate of interest x no. of months/12 =…

Q: January 1, 2021, an investor company acquires $470,000 of the investee company’s 7% bonds at a price…

A: Bonds – also known as fixed income instruments – are used by governments or companies to raise money…

Q: On January 1, 2019, Mark Corporation purchased bonds with a face value of $500,000 for $475,413.60.…

A: The exercise of recording trade and commerce for the first time in the books of accounts is known as…

Q: An investor company purchased $427,000 of 8% bonds from the investee company on January 1, 2020,…

A: Bonds:- Bonds are defined as the fixed income instrument which shows the amount of loan paid by the…

Q: On July 1, 2020, Morales Corp acquired P4,000,000 face value of X Corporation bonds with a nominal…

A: Held to Maturity securities are the securities held by the entry with the intention to retain it…

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

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

Q: On August 1, 2018, Dambro Company acquired 1,200, $1,000, 9% bonds at 97 plus accrued interest. The…

A: A bond is an instrument of raising funds. It has a fixed interest rate which is the paid by the…

Q: On April 1, 2020, Purefoods Company purchased a P1,000,000 face value 8% bond for P910,000 including…

A: Bonds are purchased on 1 april 2020 at 910000 which include interest of P20,000 of three month and…

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

A: As per conservatism principle we can anticipate losses and provide for it but we…

Q: On January 1, 2020, Coronado Company purchased 13% bonds, having a maturity value of $279,000 for…

A: SOLUTION - A journal entry records a business transaction in the accounting system for an…

Q: On January 1, 2019, Mark Corporation purchased bonds with a face value of $500,000 for $475,413.60.…

A: Prepare a schedule of bond investment interest income and discount amortization:   Date Cash…

Q: On January 1, 2019, Hyde Corporation purchased bonds with a face value of $300,000 for $308,373.53.…

A: Please find the answer to the above question below:

Q: On April 1, 2020, Purefoods Company purchased a P1,000,000 face value 8% bond for P910,000 including…

A:

Q: Cash Interest Receivable Investment in TS Fair Value Adjustment--TS Investment in AFS Securities…

A: Bonds: It is also known as a fixed-income security, is a debt instrument created for the purpose of…

Q: On June 1, 2019, Garnett Company purchased as held for collection securities 8,000 of the P1,000…

A: Face value of the bond investment: 8,000 x P1,000 = P 8,000,000 Coupon rate: 8% p.a. or 4%…

Q: On April 1, 2020, Purefoods Company purchased a P1,000,000 face value 8% bond for P910,000 including…

A: Gain = Sale value - Ending fair value of bonds

Q: n January 1, 2019, Odeng Company purchased P1,000,000, 12% bonds of Myeongdong Company for P1,063,…

A: Date  Interest Collected   Interest  Income Amortization  Carrying Amount  1/1/2019…

Q: On June 1, 2019, YODA CORP. acquired a 5-year, 10%, P1,00 value bonds at 92. The company paid…

A: Interest revenue refers to the earnings which the entity makes from the investments or on the debts…

Q: January 1, 2020, an investor company acquires $173,000 of the investee company’s 11% bonds at a…

A: Debt investment includes investment made in debt securities to have tax and other benefits and for…