Determine the gain or loss on change in fair value

Assignment Help Financial Accounting
Reference no: EM133273987

Question - On January 1, 2020, Beckham acquired a P2,000,000, 10% bond for P2,159,708. The ongoing interest rate on the date of the acquisition of the bonds was 8%. Beckham classifies the bonds as financial asset at fair value through other comprehensive income. The fair value of the bonds at the end of each year is listed below:

December 31, 2020

102

December 31, 2021

98

December 31, 2022

101

Required -

1. Determine the carrying amount of the debt instrument at the end of each year from 2020 to 2022.

2. Determine the interest income recognized by Beckham on the bonds every year from 2020 to 2022.

3. Determine the gain or loss on change in fair value recognized in Patton's statement of other comprehensive income during each year from 2020 to 2022.

4. Determine the ending balance of Unrealized Gain or Loss on Financial Asset at Fair Value through other comprehensive income found in Beckham's shareholders' equity at the end of each year from 2020 to 2022.

Reference no: EM133273987

Questions Cloud

Analyze cross-sectional data : The Individuals with Disabilities Education Act mandates that states and localities provide appropriate education for all students identified as having disabili
Exploiting foreign market opportunities : One drawback associated with internalization theory is that Group of answer choices licensing may result in a firm giving away valuable technological know-how t
What are the characteristics of a recession : Which sectors of the recreation, leisure and tourism industry are currently secure from new entrants?
Explain the domestic government regulations : Summarize the company's industry; how long it has been in business; and the attribute for which it is the least admired as a "worst" company.
Determine the gain or loss on change in fair value : Determine the gain or loss on change in fair value recognized in Patton's statement of other comprehensive income during each year from 2020 to 2022
Prepare the journal entry to record the conversion of bonds : The market price of Southbound Inc's common shares at the time of conversion was $42 per share. Prepare the journal entry to record the conversion of the bonds
Country risk of financial or banking crises : 1) The fundamental components of the Eurozone and Subprime crises that resulted in bank collapses and/or
Continuous process improvement and business process : BMI 702 Seneca College What is the difference between Continuous Process Improvement and Business Process Re-engineering ?
Market failures and urban sprawl : Suppose that each acre of agricultural land yields b dollars of open-space benefits to society, over and above the private benefits it produces

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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!

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