On Jan. 1, 20x1, Neighborhood Co. acquired P1,000,000, 12% bonds for P1,049,737. The principal is due...

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On Jan. 1, 20x1, Neighborhood Co. acquired P1,000,000, 12% bonds for P1,049,737. The principal is due on Dec. 31, 20x3 but interest is due annually every Dec. 31. The effective interest rate is 10%. The bonds are measured at fair value through other comprehensive income. Information on fair values is as follows: Dec. 31, 20x1... Dec. 31, 20x2...... ..102 105 On Jan 4, 20x3, Neighborhood Co. sold all the bonds at 104. Requirement: Provide the journal entries. with Com On Jan. 1, 20x1, Neighborhood Co. acquired P1,000,000, 12% bonds for P1,049,737. The principal is due on Dec. 31, 20x3 but interest is due annually every Dec. 31. The effective interest rate is 10%. The bonds are measured at fair value through other comprehensive income. Information on fair values is as follows: Dec. 31, 20x1... Dec. 31, 20x2...... ..102 105 On Jan 4, 20x3, Neighborhood Co. sold all the bonds at 104. Requirement: Provide the journal entries. with Com

Answer rating: 100% (QA)

To record the acquisition of the bonds on January 1 20x1 Bond Investment Dr 1049737 Ca... View the full answer