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How much is the total gain on sale of bond investments

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Reference no: EM132762924

Question - Faker Corporation - During 2020, Faker Corporation had the following transactions in bond investment held for trading:

August 1 Purchased 3,250 of P1,000, 10% bonds of T1 Company at 94 exclusive of any accrued interest. Interest is payable on June 30 and December 31

September 1 Purchased 4,000 of P500, 8% bonds of SG Corporation at 95 plus accrued interest. Interest is payable on June 30 and December 31

October 1 Sold 1,500 of SG Corporation at 102 exclusive of any accrued interest. Any related accrued interest are also sold during this date.

December 31 The fair values of the bonds held by Faker are as follows:

T1 92

SG 101

Question 1: Faker Corporation assessed that the bonds purchased with various corporations should be classified as:

Fair value through profit or loss- Irrevocable designation

Fair value through other comprehensive income

Amortized cost

Fair value through profit or loss- held for trading

Question 2: As of August 1, 2020, how much is the total credit to cash? (Round off to nearest whole number)

Question 3: As of December 31, 2020, how much is the ending balance of bond investment-trading securities? (Round off to nearest whole number)

Question 4: During 2020, how much is the total gain on sale of bond investments? (Round off to nearest whole number)

Question 5: During 2020, how much is the total net unrealized gain on bond investments? (Round off to nearest whole number and provide absolute value answer)

Reference no: EM132762924

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