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What is the carrying amount of the debt investment

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Q1) On December 31, 2019, PSJ Company purchased debt investments at amortized cost, P3,000,000 serial bonds with a nominal rate of 10% and effective rate at that time is 13%. Bonds with a face value of P1,000,000 mature on December 31, 2020 and every December 31 thereafter. Using three decimal places for the PV factor, what is the carrying amount of the debt investment on December 31, 2020?

Q2) Solo Co. purchased P300,000 bonds for P315,000. The securities are to be held until maturity to collect the contractual cash flows. The entry to record the investment includes

-a debit to Held-for-Trading Securities at P300,000.

-a credit to Premium on Investments of P15,000.

-a debit to Investment in bonds measured at amortized cost for P315,000.

-a debit to Investment in bonds measured at Fair value through other comprehensive income for P315,000.

Reference no: EM132996275

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