What are the entries that reflect ABC Corporation’s transactions for the years 2015 and 2016?
What are the entries that reflect ABC Corporation’s transactions for the years 2015 and 2016?
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
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 1RE
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Question
ABC Corporation, on March 1, 2015, issued 15% of P1,000,000 face
P1,110,401. These bonds mature on March 1, 2020 pay interest semi annually on March 1 and September
1. The securities at the date of acquisition, were designated as FVPL. On December 31, 2015, the bonds
were quoted in the market at 112. On May 1, 2016, ABC paid the bonds at 111.5 plus accrued interest.
What are the entries that reflect ABC Corporation’s transactions for the years 2015 and 2016?
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