Novi purchased ABC bonds on 1/1/22 Data regarding these available-for-sale securities follow Cost MV December 31, 2022 $150,000 $130,000 December 31, 2023 150,000 161,000 December 31, 2024 150,000 155,000 On 1/1/25, Novi sold $40,000 (cost) of the securities for $40,100. Market Value of the remaining securities at 12/31/25 was $10800. The balance of the Fair Value Adjustment account included on the 12/31/25 balance sheet is:
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- Refer to the information in RE13-5. Assume that on June 30, Aggie received interest on the Smith Corporation bonds. Prepare the June 30 journal entries to record the receipt of the interest. On April 30, 2019, Aggie Corporation purchased Smith Corporation 10%, 5-years bonds with a face value of 12,000 at par plus four months of accrued interest. Prepare the April 30 journal entry to record the purchase of these available-for-sale securities.During 2021, Anthony Company purchased debt securities as a long-term investment and classified them as trading. All securities were purchased at par value. Pertinent data are as follows: The net holding gain or loss included in Anthonys income statement for the year should be: a. 0 b. 3,000 gain c. 9,000 loss d. 12,000 lossBats Corporation issued 800,000 of 12% face value bonds for 851,705.70. The bonds were dated and issued on April 1, 2019, are due March 31, 2023, and pay interest semiannually on September 30 and March 31. Bats sold the bonds to yield 10%. Required: 1. Prepare a bond interest expense and premium amortization schedule using the straight-line method. 2. Prepare a bond interest expense and premium amortization schedule using the effective interest method. 3. Prepare any adjusting entries for the end of the fiscal year, December 31, 2019, using the: a. straight-line method of amortization b. effective interest method of amortization 4. Assume the company retires the bonds on June 30, 2020, at 103 plus accrued interest. Prepare the journal entries to record the bond retirement using the: a. straight-line method of amortization b. effective interest method of amortization
- On January 1, 2018, HI company purchased P1,000,000, 12% bonds for P1,063,394, a price that yields 10%. Interest on these bonds is payable every December 31. On April 1, 2020, HI sold P600,000 face value bonds at 101 plus accrued interest. The debt investment is designated as at FVPL. The market value of the bonds were: Dec. 31, 2018-P108; Dec.31, 2019 - P106; Dec. 31, 2020 –P104. What is the amount of gain or loss on the sale of bonds on April 1, 2020?Novi purchased ABC bonds on 1/1/22. Data regarding these available-for-sale securities follow: Cost MV December 31, 2022 $150,000 $130,000 December 31, 2023 150,000 161,000 December 31, 2024 150,000 155,000 On 1/1/25, Novi sold $40,000 (cost) of the securities for $40,100. Market Value of the remaining securities at 12/31/25 was $108,000. The balance of the Fair Value Adjustment account included on the 12/31/25 balance sheet is: a.$2,000 debit b.$2,000 credit c.$2,100 debit d.$1,900 credit e.$1,900 debitBawl purchased ABC Company bonds on 1/1/21. Data regarding these available-for-sale securities follow: Cost MV December 31, 2021 $100,000 $ 91,000 December 31, 2022 100,000 111,000 December 31, 2023 100,000 105,000 The balance of the Accumulated OCi included in the 12/31/22 Stockholders' Equity section was: Select one: a. $11,000 credit O b. $11,000 debit O c. $20,000 credit O d. $20,000 debit O e. $5,000 debit
- On January 1, 2018, HI company purchased P1,000,000, 12% bonds for P1,063,394, a price that yields 10%. Interest on these bonds is payable every December 31. On April 1, 2020, HI sold P600,000 face value bonds at 101 plus accrued interest. The debt investment is designated as at FVPL. The market value of the bonds were: Dec. 31, 2018-P108; Dec.31, 2019 - P106; Dec. 31, 2020 –P104. How much is the interest income for year 2018?During Year 1, Anthony Company purchased debt securities and holds the securities as available-for-sale. Pertinent data are as follows: Security A B C Cost $20,000 40,000 90,000 $150,000 O $11,000. O $1,000. O $3,000. O $13,000. Fair value at 12/31/Y1 $17,000 30,000 92,000 $139,000 Anthony appropriately carries these securities at fair value, and the decline in value of Security B is attributed to credit loss. The change in value of securities A and C is considered to be due to factors other than credit loss. The amount of loss on these securities that will appear on Anthony's balance sheet as a component of "Accumulated other comprehensive income" at 12/31/Y1 should beOn July 1, 2021, Young Company purchased at fair value through profit or loss P500,000 face value 8% bonds for P455,000 plus accrued interest. The bonds pay interest annually on January 1. on December 31, 2021, the bonds have a market value of P 472,500. On February 14, 2022, the company sold these bonds for P477,500. What is the gain/loss on the sale of the debt investments. a.) P5,000 gain b.) P12,500 loss c.) P40,000 gain d.) P0
- On July 1, 2021, Young Company purchased at fair value through profit or loss P500,000 face value 8% bonds for P455,000 plus accrued interest. The bonds pay interest annually on January 1. on December 31, 2021, the bonds have a market value of P 472,500. On February 14, 2022, the company sold these bonds for P477,500. What is the gain/loss on the sale of the debt investments. P5,000 gain P12,500 loss P40,000 gain P0On January 1, 2020, Lucas Company purchased P1,200,000, 14% bonds of Andres Company for P1,381,934, a price that yields 10%. Interest on these bonds is payable every December 31. The bonds mature on December 31, 2024. Market value of the bonds on different dates is as follows: December 31, 2020 112 December 31, 2021 108 December 31, 2022 105 Assume that the company intended to collect the principal and interest over the term of the bonds and did not choose the fair value option. At what amount should the bond investments be shown on December 31, 2020 statement of financial position?Required to answer. Single choice.An investor company purchased $427,000 of 8% bonds from the investee company on January 1, 2020, with interest payable on December 31. The bonds were classified as Available-for-Sale. The bonds sold for $706,390. Using the effective-interest method, the investor company revised the Available-for-Sale Debt Securities account on December 31, 2020 and December 31, 2021 by the amortized discount/premium of $6,470. and $8,200, respectively. At December 31, 2020, the fair value of the investee company bonds was $912,000. At December 31, 2021, the fair value of the investee company bonds was $843,000. What is the amount of unrealized holding gain/loss related to this investment in 2021? (Very important: Just enter the amount. DO NOT put a plus or minus sign in front of the amount.)