How much is the total cash payment in the acquisition

Assignment Help Accounting Basics
Reference no: EM132727101

Problem -

1. On January 1, 2016 A company purchased as debt investments at amortized cost, P2,000,000 of Company's 8% bonds for P1,812,000. The bonds were purchased to yield 10% interest. The bonds mature on January 1, 2026 and pay interest semi-annually on January 1 and July 1. uses the effective interest method of amortization. In its December 31 2016 statement of comprehensive income, what amount should report as interest revenue?

2. On October 1, 2016, Fernandez company purchased as debt investments at fair value through profit or loss, P100300, 14% bonds of JUAN Company for 99 plus accrued interest and broker's fees. Interest is paid semi-annually on February 1 and August 1. Broker's fees incident to this purchased amounted to 500. How much is the total cash payment in the acquisition of the debt investments on Oct 1, 2016?

Reference no: EM132727101

Questions Cloud

Baseline security requirements : What are baseline security requirements that should be applied to the design and implementation of applications, databases, systems, network infrastructure
Explain how your attitude toward unions has changed : Rank the three most important concepts you learned in this course in order of importance (one being the most important). Go to the Society for Human Resource.
Definitions of maturity stages and dimension variables : Review the section on the definitions of maturity stages and dimension variables in the CEO Technology Best Practices Arc.
Concepts of software development cycle : Discussion activity gives you the opportunity to solve a real world scenario. In doing so, you will learn the concepts of a software development cycle.
How much is the total cash payment in the acquisition : Broker's fees incident to this purchased amounted to 500. How much is the total cash payment in the acquisition of the debt investments on Oct 1, 2016
Describe the data contained and maintained in customer : Find and Describe the data contained and maintained in customer profiles, which can use to provide personalised and services to repeat customers.
How should Coconut recognize revenue related to the February : How should Coconut recognize revenue related to the February 1, 2018, arrangement? Provide the cumulative revenue recognized
Review the material on routers : It is sometimes said that information extracted from a router or switch does not necessarily provide specific evidence of a particular crime.
Determine employment laws that may govern the action : Imagine that you are the labor relations manager for a company that has entered into the grievance process with a number of employees who dispute recent.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Determine the cost of the year-end inventory and sales

Using a perpetual system and the FIFO method, determine the cost of the year-end inventory and the cost of sales

  Compute mcdonalds return on assets

Suppose in its 2017 annual report that McDonald's Corporation reports beginning. Compute McDonald's return on assets. Compute McDonald's asset turnover.

  What are the total product costs for the company

Problem - The Rock Company produces basketballs. It incurred the following costs during the year. What are the total product costs for the company

  Compute pension expense for larson corporation

Compute pension expense for Larson Corp. for the year 2011 by preparing a pension worksheet that shows the journal entry for pension expense.

  Discuss project alpha has an internal rate of return

Project Alpha has an internal rate of return (IRR) of 15 percent. Project Beta has an IRR of 14 percent.

  What will be the amount of Jill forfeiture

The accumulated value of ABY's contribution made on Jill's behalf was $20,000. What will be the amount of Jill's forfeiture

  Briefly discuss the effect that different stock valuation

Briefly discuss the effect that different stock valuation methods can have on the stock valuation in times of rising prices

  How many shares of common stock are outstanding

Determine How many shares of common stock are outstanding? Edwards Enterprises reported the following information at December 31

  What is the ending amount of stockholder equity

Izzy had no other transactions affecting common stock. And Izzy had net income $ 1,500,000. What is the ending amount of stockholder equity

  Carter inc can make 100 units of necessary component part

carter inc can make 100 units of necessary component part with the following costs dierct materials 120 000 direct

  By what amount should sales be credited

The Shop has been operating using the gross purchases method under a perpetual inventory system. By what amount should Sales be credited

  What is the total cash received on the issue date

The bonds are dated January 1, 2017, and pay interest on June 30 and December 31. What is the total cash received on the issue date

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