Reference no: EM133008332
On October 1, 2020, SMH Corporation acquired debt securities paying a lumpsum price of P5,050,000 plus transaction cost of P137,910. The acquired securities are consisted of P2,000,000 face value, 10%, serial bond, of which P500,000 face value matures every October 1, starting October 1, 2021 and P3,000,000 face value, 5-year, 12%, debenture bond dated October 1, 2020. Both securities pay interest annually every October 1.
At the date of acquisition there is no available market for the debenture bonds while the serial bonds are selling at a market rate of 11%.
On July 1, 2022, due to the emergency needs for fund infusion to finance the business expansion, the entity sold P500,000 face value of the serial bonds that mature on October 1, 2022 at face value plus accrued interest, and another P1,000,000 of the debenture bonds at 110 inclusive of accrued interest.
The company's business model for these types of securities is to collect contractual cash flows.
Round present value factor to 3 decimal places.
Required Compute for the following:
Problem 1. Interest Income to be reported in the 2022 financial statements.
Problem 2. Carrying Value of the Investment in Bonds as of December 31, 2022.
Evaluate contemporary work designs
: With reference to any organization discuss and evaluate contemporary work designs(s) and critically discuss how it impacts the effective management of its peopl
|
Discuss ingredients of a personnel policy
: You are the manager of a store and recently you reviewed your personnel 10 policy. Discuss some ingredients of a personnel policy (HR policy) as an organization
|
Discuss elements of uncertainty for internal shareholders
: Discuss elements of uncertainty for internal shareholders that remain or are introduced when using CVP analysis to evaluate profits and revenue
|
What should be the hr role of line managers
: What should be the HR role of line managers?
|
Compute for the interest income to be reported
: Compute for the Interest Income to be reported in the 2022 financial statements. On October 1, 2020, SMH Corporation acquired debt securities paying a lumpsum
|
Recent innovation in health care
: Write a 260- to 350-word article that reviews a recent innovation in health care and its impact on existing systems (e.g., first- and second-movers, wearables,
|
Is google making us stupid
: Please read the article "Is Google Making Us Stupid?" by Nicholas Carr. When you are reading the article, pay attention to the author's argument in order to ide
|
How much is the loss on impairment of loan
: On July 1, 2020, XYZ Company borrowed P2,500,000 from BPI, with 12% interest and term of 8 years. How much is the loss on impairment of loan
|
Compute for the gain on sale related to the serial bonds
: Compute for the Gain/(Loss) on sale related to the serial bonds on July 1, 2022. On October 1, 2020, SMH Corporation acquired debt securities paying
|