Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

answers with solution/explanation please hehe Problem 9(FAAC, Discount, Annual Interest, Reclassification to FA-FVOCI, FA-FVPL) On January 1, 2022, Doc Ock Corp. purchased P1,000,000, 10%, 5-year

answers with solution/explanation please hehe
image text in transcribed
Problem 9(FAAC, Discount, Annual Interest, Reclassification to FA-FVOCI, FA-FVPL) On January 1, 2022, Doc Ock Corp. purchased P1,000,000, 10\%, 5-year bonds which it classified as FA-AC. The bonds were purchased to yield 12%. Interest is payable every December 31 . The bonds were quoted at 99 at the end of 2022 . At the end of 2023, Doc Ock Corp. decided to change its business model and reclassified the instrument as FAFVOCI. On this date, the effective rate applicable on the bonds was 11%. The bonds were quoted at 101 at the end of 2024. 1. Prepare the journal entries from 2022 to 2024 . 2. Assuming that the instrument was reclassiffed to FA-FVOCI (instead of FA-FVPL). prepare the necessary journal entries from 2022 to 2024

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions