Novi purchased ABC bonds on 1/1/22 Data regarding these available-for-sale securities follow Cost MV December 31, 2022 $150,000 $130,000 December 31, 2023 150,000 161,000 December 31, 2024 150,000 155,000 On 1/1/25, Novi sold $40,000 (cost) of the securities for $40,100. Market Value of the remaining securities at 12/31/25 was $10800. The balance of the Fair Value Adjustment account included on the 12/31/25 balance sheet is:

Novi purchased ABC bonds on 1/1/22 Data regarding these available-for-sale securities follow Cost MV December 31, 2022 $150,000 $130,000 December 31, 2023 150,000 161,000 December 31, 2024 150,000 155,000 On 1/1/25, Novi sold $40,000 (cost) of the securities for $40,100. Market Value of the remaining securities at 12/31/25 was $10800. The balance of the Fair Value Adjustment account included on the 12/31/25 balance sheet is:

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 1MC

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Refer to the information in RE13-5. Assume that on June 30, Aggie received interest on the Smith Corporation bonds. Prepare the June 30 journal entries to record the receipt of the interest. On April 30, 2019, Aggie Corporation purchased Smith Corporation 10%, 5-years bonds with a face value of 12,000 at par plus four months of accrued interest. Prepare the April 30 journal entry to record the purchase of these available-for-sale securities.
During 2021, Anthony Company purchased debt securities as a long-term investment and classified them as trading. All securities were purchased at par value. Pertinent data are as follows: The net holding gain or loss included in Anthonys income statement for the year should be: a. 0 b. 3,000 gain c. 9,000 loss d. 12,000 loss
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On July 1, 2021, Young Company purchased at fair value through profit or loss P500,000 face value 8% bonds for P455,000 plus accrued interest. The bonds pay interest annually on January 1. on December 31, 2021, the bonds have a market value of P 472,500. On February 14, 2022, the company sold these bonds for P477,500. What is the gain/loss on the sale of the debt investments. P5,000 gain P12,500 loss P40,000 gain P0
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On Feb. 1, 2021, ABC purchased P2,000,000 face value bonds at 97plus accrued interest. It was acquired for trading purposes and isaccounted as FA‐FV‐PL The bonds mature on Sept. 1, 2023. Interestat 8% per annum is paid every Mar. 31 and Sept. 1. On Dec. 31,2021, the bonds were selling at 96. Identify the Investment in Bonds as of Dec. 31, 2021
On January 1, 2020, Lucas Company purchased P1,200,000, 14% bonds of Andres Company for P1,381,934, a price that yields 10%. Interest on these bonds is payable every December 31. The bonds mature on December 31, 2024. Market value of the bonds on different dates is as follows: December 31, 2020 112 December 31, 2021 108 December 31, 2022 105 Assume that the company intended to collect the principal and interest over the term of the bonds and did not choose the fair value option. At what amount should the bond investments be shown on December 31, 2020 statement of financial position? a. 1,352,128 b. 1,243,617 c. 1,283,275 d. 1,319,341