ABC Corporation is authorized to issue P5,000,000 of 6%, 10-year bonds dated July 1, 2020, with interest payments on December 31, and June 30. When the bonds are issued on November 1, 2020, ABC Corporation receives cash of P5,150,000, including accrued interest. The journal entry to record the issuance of the bonds would include A. P150,000 bond discount B. P50,000 bond discount C. P150,000 bond premium D. P50,000 bond premium
ABC Corporation is authorized to issue P5,000,000 of 6%, 10-year bonds dated July 1, 2020, with interest payments on December 31, and June 30. When the bonds are issued on November 1, 2020, ABC Corporation receives cash of P5,150,000, including accrued interest. The journal entry to record the issuance of the bonds would include A. P150,000 bond discount B. P50,000 bond discount C. P150,000 bond premium D. P50,000 bond premium
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
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 16E
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ABC Corporation is authorized to issue P5,000,000 of 6%, 10-year bonds dated July 1, 2020, with interest payments on December 31, and June 30. When the bonds are issued on November 1, 2020, ABC Corporation receives cash of P5,150,000, including accrued interest.
The
A. P150,000 bond discount
B. P50,000 bond discount
C. P150,000 bond premium
D. P50,000 bond premium
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