You are the accountant of ABC Co. You are tasked in accounting for ABC's investment in Treasury Bonds. The bonds are classified as financial asset measured at amortized cost.

Bond certificate says: Worth of $ 10,000. 7% garuanteed bond of 2000 series

Case #1: Principal due at maturity; interest due quarterly The principal amount of the bond matures on the date shown on the bond certificate; however interests are due quarterly (i.e) every three months following the date shown on the bond certificate. Interests are to be credited directly to ABC's account with DBP. The bond was acquired at face amount on July 1, 2000.

Requirements: a. Provide all the journal entries in year 2000 b.How much is the interest income foe the year 2000? c. How much is the interest receivable on december 31, 2000? d. How much cash from collections on the bond would have been credited to ABC's account by December 31,000?

Case #2:Principal due at maturity;interest due annually The principal amount of the bond matures on the date shown on the bond certificate; however, interests are due annually (i.e, every May 1 following the date shown on the bond certificate). The bond was acquired on May 1,2000 at a price that reflects a 6% effective interest rate.

Requirements: a. What is the journal entry to record the investment on May 1, 2000? b. How much is the interest receivable on December 31,2000? c. How much is the unamortized discount or premium as of December 31, 2000? ( Indicate whether it is a discount or a premium.

U1 10,000 Mall 10,0.00 10,000 2. P.X No. P-X DEVELOPMENT BANK OF THE PHILIPPINES 7% GUARANTEED HOXD OF 2000 SERIES Y TOTAL AUTHORIZKD 1*SUK (SERIES P): P80.000.000 UXCONDITIOXALIX QUARANTED HOTI AN TO XCIPAL ASD INTERRUT BY TU QOYXORNT OF THE REPUBLIC OX THE PHILPmxx S DATED MAY 1. 2000 DUR MAY 1.200 9. Development and the Philosofia model for mobo mwish, bonely Meydanda harof the free TEN THOUSAND PESOS U1 10,000 Mall 10,0.00 10,000 2. P.X No. P-X DEVELOPMENT BANK OF THE PHILIPPINES 7% GUARANTEED HOXD OF 2000 SERIES Y TOTAL AUTHORIZKD 1*SUK (SERIES P): P80.000.000 UXCONDITIOXALIX QUARANTED HOTI AN TO XCIPAL ASD INTERRUT BY TU QOYXORNT OF THE REPUBLIC OX THE PHILPmxx S DATED MAY 1. 2000 DUR MAY 1.200 9. Development and the Philosofia model for mobo mwish, bonely Meydanda harof the free TEN THOUSAND PESOS