User Account

All Pages

Compute for the carrying amount of the investment

Assignment Help Financial Accounting
Reference no: EM132803867

Question - On may 21 1020, an entity acquired P 1,600,000 9% bonds at 97 plus accrued interest. Interest bond is payable semiannually on march 1 and September 1 and bonds mature on September 1, 2023. The entity intended to hold these bond until they mature.

Due to an isolated events that is beyond the entity control, the entity sold bonds of 480,000 for 103 plus accrued interest on May 1, 2021.

On July 1, 2022, bonds of 640,000 were exchanged for 90,000 ordinary shares, to par value, qouted on the market on this date 8 per share. Interest was received on bonds to date of exchange.

On September 1, 2023, remaining bonds were redeemed and accrued interest was received.

Use straight line method.

Compute for the total interest income for 2020.

Compute for the carrying amount of the investment in bonds as at December 31, 2020.

Reference no: EM132803867

Questions Cloud

What is the bonus on profit after deduction of bonus : Fajardo, the managing partner, is allowed a bonus of 20% with an income tax rate of 35%. What is the bonus on profit after deduction of bonus
New product in an entirely new market : Suppose you are a manager in any existing firm which has expanded its business by launching an entirely new product in an entirely new market
Explain the role of the brain and of the spinal cord : Explain the role of the brain and of the spinal cord. Have you or someone you know ever been prescribed a psychotropic medication (ex: anti-anxiety meds)?
What amount shall be included in the non-current liabilities : What amount shall be included in the non-current liabilities in relation to the lease on December 31, 2020? Hindrance Company leased equipment for the entire
Compute for the carrying amount of the investment : Use straight line method. Compute for the carrying amount of the investment in bonds as at December 31, 2020
Context of individualistic and team-work leadership : Is there a one-size-fits-all leadership orientation? Explain your answer within the context of individualistic and team-work leadership orientations.
What total amount shall be included in the income statement : What total amount shall be included in the income statement for the year 2018? Whistle Company leased a machine from Poll Company
What are the first visible signs of puberty : What helps children thrive in difficult family or neighborhood conditions? How might siblings raised together not share the same family environment?
Context of individualistic and team-work leadership : Is there a one-size-fits-all leadership orientation? Explain your answer within the context of individualistic and team-work leadership orientations.

Reviews

Write a Review

Financial Accounting Questions & Answers

  All the transactions in general journal form

Valcomb Wholesale Distributor made the following transactions in year 6.Record all the transactions in general journal form. Aug 8th bought inventory on account from Fountain Mfg. company for $11,300.00. terms 2.5/10, net 30.

  Find the insurer liability was zero on this claim by abc inc

It was discovered that the fire took place due to negligence of the machine operator. As a result, the insurer's liability was zero on this claim by ABC Inc.

  Briefly describe when petty cash fund should be replenished

Briefly describe when petty cash fund should be replenished. Because there is cash on hand, is there a need to replenish the fund at year end on December 31? Explain.

  How long will the scholarship be paid

The inheritance was invested in a scholarship fund for 5 years (until he turns 18 years old) at 9% compounded annually. How long will the scholarship be paid

  Describe the concept of internal controls

Internal Controls - Describe the concept of Internal Controls. What are the objectives and elements of the control environment

  Normal balance per the general ledger

Cash received from a customer on account was debited for $570, and Accounts Receivable was credited for the same amount. The actual collection was for $750.

  Prepare a computer credit memo

Prepare a computer credit memo that reduces the customer's account balance by the same amount

  Dcl industries purchased a supply of mechanical components

dcl industries purchased a supply of mechanical components from e corporation on november 1 2011. in payment for the

  What chloe true rate of return on the investment is

The present value of PI for five periods at 10% is 0.621. Using the net-present value method. CHLOE's true rate of return on this investment is

  Base transactions the consolidated statements

The focus is on the concept of red flags and how we detect these inside a corporation. This is important, as the internal controls mechanism should define a specific approach for monitoring financial statements (and the base transactions below the co..

  Budget for planning and operation within business

There are many advantages to using a budget for planning and operation within a business. Share what you believe are the three main advantages for using a budget. Select one of these advantages and present an example, as well as how you feel that adv..

  Explain major differences between equity and debt financing

Explain the major differences between equity and debt financing, and discuss the primary ways in which each would affect the future of the partners' business.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd