Lyka Company had the following bond investments held for trading during 2019. The fiscal period is...
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Lyka Company had the following bond investments held for trading during 2019. The fiscal period is the same as the calendar period. • SMC-A bonds was purchased at face value of P100,000 last March 1, 2017, 4.82% per annum interest, receiving quarterly interest every June 1, Sept 1, Dec 1 and Mar 1. DD24 bonds was purchased at face value of P200,000 last July 1, 2017, 6.10% per annum interest, receiving quarterly interest every Oct 31, Jan 31, April 30 and July 31. • Purchased on May 1, 2019 date of issuance of the SMPH-J bonds P100,000 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.com.ph Quoted Prices Dec 31, 2019 Coupon Rate Dec 31, 2018 SMC Series A 4.82% 99.133 101.00 DD24 RR22 SMPH Series J 6.10% 90.742 95.043 6.22% 97.88 Required: a) 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.) b) Present the investments on December 31, 2019. Lyka Company had the following bond investments held for trading during 2019. The fiscal period is the same as the calendar period. • SMC-A bonds was purchased at face value of P100,000 last March 1, 2017, 4.82% per annum interest, receiving quarterly interest every June 1, Sept 1, Dec 1 and Mar 1. DD24 bonds was purchased at face value of P200,000 last July 1, 2017, 6.10% per annum interest, receiving quarterly interest every Oct 31, Jan 31, April 30 and July 31. • Purchased on May 1, 2019 date of issuance of the SMPH-J bonds P100,000 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.com.ph Quoted Prices Dec 31, 2019 Coupon Rate Dec 31, 2018 SMC Series A 4.82% 99.133 101.00 DD24 RR22 SMPH Series J 6.10% 90.742 95.043 6.22% 97.88 Required: a) 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.) b) Present the investments on December 31, 2019.
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Related Book For
Cornerstones of Managerial Accounting
ISBN: 9780538473460
4th edition
Authors: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Posted Date:
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