bonds payable with face amount of P7,000,000 on April 1, 2021. Supersonic Company was authorized to issue 12%, 10-year bonds payable with face amount of P7,000,000 on April 1, 2021. Interest on the bonds is payable semiannually on April 1 and October 1 of each year. The bonds were sold to underwriters on April 1, 2021 at 106. The entity amortized discount or premium on bonds payable only at the end of the fiscal year, using the straight line method. Required: 1. Prepare journal entries for 2021 and 2022 including adjustments at the end of each year. Use memorandum approach. 2. Present the bonds payable in the statement of financial position on December 31, 2022.

bonds payable with face amount of P7,000,000 on April 1, 2021. Supersonic Company was authorized to issue 12%, 10-year bonds payable with face amount of P7,000,000 on April 1, 2021. Interest on the bonds is payable semiannually on April 1 and October 1 of each year. The bonds were sold to underwriters on April 1, 2021 at 106. The entity amortized discount or premium on bonds payable only at the end of the fiscal year, using the straight line method. Required: 1. Prepare journal entries for 2021 and 2022 including adjustments at the end of each year. Use memorandum approach. 2. Present the bonds payable in the statement of financial position on December 31, 2022.

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

Chapter9: Current Liabilities And Contingent Obligations

Section: Chapter Questions

Problem 5E: Disclosure of Debt On May 1, 2019, Ramden Company issues 13% bonds with a face value of 2 million....

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