Question: Lvka Company had the following bond investments held fortrading during 2019. The fiscal period is the same as the calendar period. SMC-A bonds Was

Lvka Company had the following bond investments held fortrading during 2019. Thefiscal period is the same as the calendar period. SMC-A bonds Was

Lvka Company had the following bond investments held fortrading during 2019. The fiscal period is the same as the calendar period. SMC-A bonds Was purchased at face value Of last March I, 2017, 4.82% per annum interest, receiving quarter-Iv interest every June I, Sept I, Dec and Mar I. DD24 bonds was purchased at face value of last July I, 2017.6.10% per annum interest. receiving quarterly interest every Oct 31. Jan 31, April 30 ard July 31. purchased on May 1.2019 date of issuance of the SMPH-J bonds face value for 95.3, 6.22% per annum coupon interest rate. Interest is received semi-annually every May 1 and Nov 1. Sold all the SMC- A bonds for 101 plus accrued interest on November 1, 2019 On December 27, assuming the following are the quoted prices at year end based on data at www.pds.corn.ph Rate Quoted prices SMC Series A 0024 RR22 SMPH Series J Required: Cou 4.82% 6.10% 6.22% Dec 31.2018 99.133 90.742 Dec 3 2019 101.00 97.88 a) b) Prepare journal entries to record all the transactions affecting the bond investments. (Include the appropriate date and record the acquisition, interest receipt, accrual of interest, etc.) Present the investments on December 31, 2019.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!