Question
23.On June 1, 2016, ABC Corporation purchased as a long-term investment 4, 000 of the P1, 000 face value, 8% bonds of DEF Corporation for
23.On June 1, 2016, ABC Corporation purchased as a long-term investment 4, 000 of the P1, 000 face value, 8% bonds of DEF Corporation for P3, 645,328. Interest is payable semiannually on December 1 and June 1. The bonds mature on June 1, 2022. On November 1, 2017, ABC sold the bonds for a total consideration of P3, 925,000. ABC intended to hold these bonds until they matured.
The interest income for the year 2017 is
306, 608
311, 218
P304, 748
P310, 715
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Accounting Information Systems
Authors: Cynthia D Heagy, Constance M Lehmann
7th Edition
1111219516, 978-1111219512
