Find the gain recognized and reported in the profit

Assignment Help Accounting Basics

Reference no: EM132669989

On January 1, 2019, Zamboanga Company purchased 9% bonds with face amount of P6,000,000. The bonds mature in January 1, 2024 and were purchased for P5,500,000 to yield 115.

Zamboanga Company classified the bonds as held for trading and interest is payable annually every December 31.

The fair value of the bonds on December 31, 2019 and December 31, 2020 were P5,450,000 (12% yield) and P6,150,000 (8% yield)

Problem 1: Assuming that Zamboanga Company reclassified the investment to financial asset measured at amortized cost:

a. The gain (loss) recognized and reported in the Profit and Loss section for 2019 is:

b. The carrying value of the bonds reported in the December 31, 2020 balance sheet is:

c. The gain (loss) recognized and reported in the Profit and Loss section for 2020 is:

Problem 2: Assuming that Zamboanga Company reclassified the investment to financial asset measured at FVOCI:

a. The gain (loss) recognized and reported in the Profit and Loss section for 2019 is:

b. The carrying value of the bonds reported in the December 31, 2020 balance sheet is:

c. The gain (loss) recognized and reported in the Profit and Loss section for 2020 is:

Reference no: EM132669989

Questions Cloud

Formation of macromolecules : Describe organic molecules, and explain the role of functional groups and the formation of macromolecules

Summarize the name of the city and healthcare system : Summarize the name of the city and healthcare system that you selected in Week One. Evaluate the current state of the healthcare system in the city you selected

List two chemicals that can interfere with cellular : List two chemicals that can interfere with cellular respiration and detail its effects and the mechanism that causes this interference.

Calculate the receipts from accounts receivable for June : Question - From the following data for Wang Enterprises, calculate the receipts from accounts receivable for June, July and Aug 2016

Find the gain recognized and reported in the profit : Find the gain (loss) recognized and reported in the Profit and Loss section for 2019 is? On January 1, 2019, Zamboanga Company purchased 9% bond

What genes would be downregulated : What types of genes would you expect to be upregulated by cells within a biofilm?

Should wolves be reintroduced to rio blanco county : What proposals has the city of Denver made to reduce water consumption? How might this impact individual consumers? Should wolves be reintroduced to Rio Blanco.

Determine number of plaque forming units in virus sample : Can you explain how to determine the number of plaque forming units in a virus sample?

Formation impact the effectiveness of an antibiotic : How could biofilm formation impact the effectiveness of an antibiotic? Explain.

User Account

All Pages