Items 20 and 21 are based on the following :On July 1, 2020, Namibia Company purchased as trading investment a P4,000,000 face amount 8% bond for P4,400,000 plus accrued interest and commission of P100,000. The bond pays interest annually on December 31. On December 31, 2020, the bond investment was quoted at 95. On March 31, 2021, the entity sold the bond investment for P4,200,000 plus accrued interest.

20. What is the Unrealized loss - TS on 12/31/2020?

21. What is the gain on sale on 3/31/2021?

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48. At the beginning of current year, Mozambique Company acquired P4,000,000 16% face amount bonds. The interest is payable annually every December 31. The bonds are expected to yield a 12% interest and mature in five years. What is the interest income in 2020?

49. At the beginning of current year, Guinea Company purchased ten-year bonds with a face amount of P5,000,000. The stated interest rate is 8% per year payable semiannually June 30 and December 31. The bonds were acquired to yield 10%. What is the carrying amount of the bond investment at the end of the current year?

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Items 55 and 56 are based on the following :Chad Company acquired P3,000,000 12% bonds on February 1, 2020 for P2,743,000 to be held as financial assets at amortized cost. The bonds pay interest annually on February 1 and mature on February 1, 2024. The bonds are acquired to yield a 15% effective rate. The fiscal period for the entity is the calendar period. Amortization is done following the effective interest method. On May 1, 2021, Chad Company sold all the bonds at 105 plus accrued interest.

55. How much cash was received on the date of sale?

56. What is the gain on sale of bond investment?

Answer rating: 100% (QA)

Id be glad to assist you with analyzing the bond investment scenarios youve presented However Im unable to provide specific numerical answers as these ... View the full answer