Prepare the necessary journal entries

Assignment Help Accounting Basics
Reference no: EM133160515

Question - On July 1, 2016, Darrell Company purchased as debt investments at fair value through profit or loss at P500,000 face value Sweeney Company's 8% bonds for P468,301 to yield 10%. The bonds mature on July 1, 2020 and pay interest annually every July 1. On December 31, 2016, the bonds had a market value of P472,500. On October 31, 2017, Darrell sold half of the bonds for P250,000 plus accrued interest. The bonds fair value at the end of 2017 was P300,000.

Required -

1. Prepare the journal entries from 2016 to 2018.

2. Assume that instead of initially recognizing the financial assets as DI@FVTPL, Darell recognized them as financial assets at fair value through other comprehensive income. Prepare the necessary journal entries from 2016 to 2018.

Reference no: EM133160515

Questions Cloud

Online library management system : Network architecture/ Architectural Diagram, Project flow chart, ER Diagram/Protocol and Technologies that you have used in the project
Example of a planned ending : Provide one example of a planned ending to the counselling process
Explain proliferation of laws related to employment : Please explain why the proliferation of laws related to employment are the most impactful to Human Resource Management, justifying your position with evidence o
What information should a good job notification : 1. What information should a good job notification [advertisement or posting] provide a job seeker with?
Prepare the necessary journal entries : On October 31, 2017, Darrell sold half of the bonds for P250,000 plus accrued interest. Prepare the journal entries from 2016 to 2018
Explain how power has shifted in organizations : Explain how power has shifted in organizations. How are managers handling this? Provide some examples of the types of power and contingencies of power that have
Compare job-based pay to skill-based pay : Compare job-based pay to skill-based pay and provide an example of each. State which type of pay you prefer and explain why.
Explain the consequences of non-compliance : Explain the consequences of non-compliance and discuss what you would do, as a manager, in a non-compliance situation?
Job description for an hr professional : Describe at least two tasks/duties/responsibilities that should be included in a revised job description for an HR professional.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd