Reference no: EM132588684

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

Coupon Rate                 Quoted Prices

Dec 31, 2018              Dec 31, 2019

SMC Series A       4.82%       99.133        101.00

DD24 RR22             6.10%   90.742       95.043

SMPH Series J          6.22%       97.88

Required:

Question 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.)

Question b) Present the investments on December 31, 2019.