The following investment account was taken from the general ledger of One Dream Investment Company: Debt Investments Fulfilled Dream 6% bonds (2,000,000 face value, due December 31, 2027) Date PR Debit Credit Balance January 2, 2022 VR P1,812,300 P1,812,300 June 30, 2022 CRJ 60,000 1,752,300 Dec. 31, CRJ 60,000 1,692,300 2022 Dec. 31, 2022 195,000 1,497,300 In the course of your examination, you obtained the following information: . Interest checks were received on June 30 and December 31 and were credited to the investment account. • One dream sold P200,000 of its investment on December 31, 2022 for P195,000. • Effective interest rate on this investment, as computed by your audit staff, is 8%. • One Dream included this investment in a portfolio that is held to collect and for sale. The fair value at December 31, 2022 and 2023 is 97.5 and 105, respectively.

The following investment account was taken from the general ledger of One Dream Investment Company: Debt Investments Fulfilled Dream 6% bonds (2,000,000 face value, due December 31, 2027) Date PR Debit Credit Balance January 2, 2022 VR P1,812,300 P1,812,300 June 30, 2022 CRJ 60,000 1,752,300 Dec. 31, CRJ 60,000 1,692,300 2022 Dec. 31, 2022 195,000 1,497,300 In the course of your examination, you obtained the following information: . Interest checks were received on June 30 and December 31 and were credited to the investment account. • One dream sold P200,000 of its investment on December 31, 2022 for P195,000. • Effective interest rate on this investment, as computed by your audit staff, is 8%. • One Dream included this investment in a portfolio that is held to collect and for sale. The fair value at December 31, 2022 and 2023 is 97.5 and 105, respectively.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter4: The Balance Sheet And The Statement Of Shareholders' Equity

Section: Chapter Questions

Problem 5RE

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The following investment account was taken from the general ledger of One Dream Investment Company: Debt Investments - Fulfilled Dream 6% bonds (2,000,000 face value, due December 31, 2027) Date PR Debit Credit Balance January2, 2022 VR VR P1,812,300 P1,812,300 June 30, 2022 CRJ 60,000 1,752,300 Dec. 31, 2022 CRJ 60,000 1,692,300 Dec. 31, 2022 195,000 1,497,300 In the course of your examination, you obtained the following information: Interest checks were received on June 30 and December 31 and were credited to the investment account. One dream sold P200,000 of its investment on December 31, 2022 for P195,000. Effective interest rate on this investment, as computed by your audit staff, is 8%. (4% - semi annual) One Dream included this investment in a portfolio that is held to collect and for sale. The fair value at December 31, 2022 and 2023 is 97.5 and 105, respectively. How much is the gain or…
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Question Content Area Bond (held - to - maturity) investments Journalize the entries to record the following selected held - to - maturity investment transactions for Marr Products: If an amount box does not require an entry, leave it blank. Question Content Area a. Purchased for cash $180,000 of Hotline Inc. 5% bonds at 100 plus accrued interest of $1,500. blankAccountDebitCredit blank Question Content Area b. Received first semiannual interest payment. blankAccountDebitCredit blank Question Content Area c. Sold $90,000 of the bonds at 102 plus accrued interest of $750. blankAccountDebitCredit blank Question Content Area d. Received face value of remaining bonds at their maturity. blankAccountDebitCredit blank
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and investment transactions nstructions structions urnalize the entries to record the following selected bond investment transactions for Hall Trust (refer to the Chart of Accounts for exact wording of account titles): 9 urnal 10 Apr. 1 Purchased for cash $372,000 of Medina City 3% bonds at 100 plus accrued interest of $2,790, paying interest semiannually. Received first semiannual interest payment. Sold $139,200 of the bonds at 98 plus accrued interest of $348. June 30 July 31 Apr. 1 Chart of Accounts Journal Jun. 30 Jul. 31 Investments-Medina City Bonds *My Work 1 moro Interest Receivable Cash Cash Interest Receivable Interest Revenue Cash Loss on Sale of Investments Interest Receivable Investments-Medina City Bonds 372,000.00 2,790.00 5,580.00 133,980.00 5,568.00 I 374,290.00 2,790.00 2,790.00 ↑ ↑ ↓ ↑ ↓ Shaded cells have feedback ↑
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