Question: PLEASE SHOW COMPLETE SOLUTION IN EVERY ANSWER. On January 1, 2019, Shimmery Company purchased a 6-year bond with a face amount of 6,000,000 to yield

PLEASE SHOW COMPLETE SOLUTION IN EVERY ANSWER.

PLEASE SHOW COMPLETE SOLUTION IN EVERY ANSWER. On January 1, 2019, Shimmery

On January 1, 2019, Shimmery Company purchased a 6-year bond with a face amount of 6,000,000 to yield 8%. Interest and principal is to be paid every December 31. An active market is available so there is no problem to ascertain the fair value of the bonds. The stated rate of the bond is 11.80%. The bond is trading: December 31, 2019 96 December 31, 2020 101 December 31, 2021 98.5 December 31, 2022 99.75 Use four decimal places only. QUESTIONS: 1. What is the purchase price of the investment? 2. What is the Carrying Amount of the investment: FVTPL FVTOCI AC 12/31/19 ? ? 12/31/20 ? 12/31/21 ? ? 12/31/22? ? 3. Interest Income of the investment FVTPL FVTOCIAC 12/31/19 ? 12/31/20 ? ? 12/31/21 ? 12/31/22? ? 4. Gain or Loss: FVTPL FVTOCI (P/L) (OC) 12/31/19? ? 12/31/20? ? 12/31/21 ? ? 12/31/22? ? On January 1, 2019, Shimmery Company purchased a 6-year bond with a face amount of 6,000,000 to yield 8%. Interest and principal is to be paid every December 31. An active market is available so there is no problem to ascertain the fair value of the bonds. The stated rate of the bond is 11.80%. The bond is trading: December 31, 2019 96 December 31, 2020 101 December 31, 2021 98.5 December 31, 2022 99.75 Use four decimal places only. QUESTIONS: 1. What is the purchase price of the investment? 2. What is the Carrying Amount of the investment: FVTPL FVTOCI AC 12/31/19 ? ? 12/31/20 ? 12/31/21 ? ? 12/31/22? ? 3. Interest Income of the investment FVTPL FVTOCIAC 12/31/19 ? 12/31/20 ? ? 12/31/21 ? 12/31/22? ? 4. Gain or Loss: FVTPL FVTOCI (P/L) (OC) 12/31/19? ? 12/31/20? ? 12/31/21 ? ? 12/31/22

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 Finance Questions!

Please show complete solution in every answer. On January 1, 2019, Shimmery Company purchased a 6-year bond with a face amount of 6,000,000 to yield 15%. Interest and principal is to be paid every...

Please show complete solution in every answer. On January 1, 2019, Shimmer}; Company purchased a 6-year bond with a face amount of 5,500,000 to yield 8%. Interest is to be paid every December 31...

Please show complete solution in every answer. Accounting for Debt Investments 1. On January 1, 2019, Shine Company purchased a 6-year bond with a face amount of P5,5 00,000 to yield 8%. Interest is...

Please show complete solution in every answer. refer to the image provided Accounting for Debt Investments 1. On January 1, 2019, Shine Company purchased a 6-year bond with a face amount of...

Please show complete solution in every answer. Accounting for Debt Investments 2. On January 1, 2019, Shine Company purchased a 6-year bond with a face amount of P3,500,000 to yield 13%. Interest is...

Please show complete solution in every answer. refer to the image provided Accounting for Debt Investments 1. On January 1, 2019, Shine Company purchased a 6-year bond with a face amount of...

Please show complete solution in every answer. Purchase of Debt Investment and Subsequent Measurement 1. 0n ]uly 1, 2020, Tuguegarao Company purchased as a long term investment P8,000,000 of Candon...

Consider a plant with the following capital investment, sales revenues, and cost of manufacturing: (50 pts broken out below) Capital Amount (in millions) Land $10 (end of year 0) Fixed Capital...

The following select account data is taken from the records of Reese Industries for 2019 Account Reese Industries data Sales Merchandise Inventory Sales Discounts Interest Expense Sales Returns and...

Weiland Incorporated has 3 0 0 0 0 0 shares outstanding that sell for $ 8 0 per share. The company plans a 5 for 2 stock split. How many shares will be outstanding after the split?

that they would expect each of the activities to take. Their responses are shown in the following table: \ table [ [ , Time Estimates ( days ) ] , [ Activity , Optimistic,Most Likely,Pessimistic ] ,...

Some people have negative attitudes and use negative strokes that hurt others. Is giving negative strokes unethical behavior?

Select a person you know who is consistently aggressive. Do people let this person get his or her way? Do you? What is the best way to deal with an aggressive person? What is the best way to deal...

Recall an occasion of violence at school or work. Describe the situation. Were there signs that violence was coming? What can you do to help prevent violence?