What is the Interest Income on December 31, 2019? * On January 1, 2017, ABC...
70.2K
Verified Solution
Link Copied!
Question
Accounting
image
What is the Interest Income on December 31, 2019? * On January 1, 2017, ABC Company purchased 5 year bonds with face value of P1,000,000 and stated interest of 12% per year payable annually every December 31. The bonds were acquired to yield 10%. The following data relate to the bonds December 31, 2017 December 31, 2018 Acquisition cost Amortized cost Fair value Amortized cost Fair value P.303,263 M,253,589 P4,388 766 P4,198,918 P.0972/19 The prevailing market rate of interest applicable to the bonds at the end of market 2017 and 2018 are at 9% and 11% respectively. The prevailing market rate of interest on January 1, 2019 is also 11%. Assume that the above securities are properly classified as FVPL under PFRS 9: Your
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
