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On April 1, 2015, Purefoods Company purchased as a short- term investment a P 1,000,000 face value 8% bond for P 910,000 including accrued interest
On April 1, 2015, Purefoods Company purchased as a short- term investment a P 1,000,000 face value 8% bond for
P 910,000 including accrued interest and commission. The commission to acquire the bonds was P 5,000. The bonds
are classified as held for trading. The bonds are dated January 1, 2015 and mature on January 1, 2020, and pay
interest semi- annually on January 1 and July 1. On December 31, 2015, the bonds had a fair value of P 920,000.
On April 1, 2016, Purefoods sold the bonds for a total consideration of P 950,000.
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