On January 1, 2019, JYP Company purchased P1,200,000, 14% bonds of…
On January 1, 2019, JYP Company purchased P1,200,000, 14% bonds of PSY Company for P1,352,143, a price that yields 10%. Interest on these bonds is payable every December 31. The bonds mature on December 31, 2022. On April 1, 2021, to pay a maturing obligation, JYP sold P720,000 face value bonds at 101 plus accrued interest. Market value of the bonds on different dates is as follows:
December 31, 2019 108
December 31, 2020 106
December 31, 2021 104
Assume that the bonds were classified as debt investments at fair value through profit or loss.
- What amount of gain or loss should be reported on the sale of the bond investments in April 1, 2021?
- At what amount should the bond investments be should on December 2020 statements of financial position?
- How much is interest income for the year ended December 31, 2019?
- At what amount should the bond investments be should on December 2021 statements of financial position?