Four Company issued a five-year P1,000,000, 15% bonds on January 1, 2021 for P1,110,401, an issuance price that yields 12%. Interest is payable semi-annually at half and end of the year. Required: Prepare an amortization table and the foregoing journal entries assuming: 1. The bonds reached maturity 2. The bonds were retired on October 31, 2024 at 102 plus accrued interest and assume that the company prepared appropriate entries every interest payment dates until June 30, 2024
Four Company issued a five-year P1,000,000, 15% bonds on January 1, 2021 for P1,110,401, an issuance price that yields 12%. Interest is payable semi-annually at half and end of the year. Required: Prepare an amortization table and the foregoing journal entries assuming: 1. The bonds reached maturity 2. The bonds were retired on October 31, 2024 at 102 plus accrued interest and assume that the company prepared appropriate entries every interest payment dates until June 30, 2024
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 8RE
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Four Company issued a five-year P1,000,000, 15% bonds on January 1, 2021 for P1,110,401,
an issuance price that yields 12%. Interest is payable semi-annually at half and end of the year.
Required: Prepare an amortization table and the foregoing
1. The bonds reached maturity
2. The bonds were retired on October 31, 2024 at 102 plus accrued interest and assume that
the company prepared appropriate entries every interest payment dates until June 30, 2024
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