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At what amount should the bond investments

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Question - On January 1, 2019, JYP Company purchased P1,200,000, 14% bonds of PSY Company for P1,352,143, a price that yields 10%. Interest on these bonds is payable every December 31. The bonds mature on December 31, 2022. On April 1, 2021, to pay a maturing obligation, JYP sold P720,000 face value bonds at 101 plus accrued interest. Market value of the bonds on different dates is as follows:

December 31, 2019 112

December 31, 2020 108

December 31, 2021 105

Assume that the bonds were designated as at fair value through other comprehensive income.

-What cumulative amount of other comprehensive income shall be presented in the equity section of the statement of financial position at December 31, 2021?

-What amount of gain or loss should be recognized on the sale of investments on April 1, 2021?

-At what amount should the bond investments be shown on December 31, 2020 statement of financial position?

-What amount of Fair value adjustment should be recognized on December 31, 2020?

-What amount should interest income will be taken to profit or loss for the year ended December 31, 2021?

-What amount of Fair value adjustment should be recognized on December 31, 2021?

Reference no: EM133016216

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