On August 31, 2021, BEAST Company issued at 104 plus accrued interest, three thousand 10% bonds with a face amount of ₱1,000 per bond. The bonds are dated April 1, 2021, mature on March 31, 2026, and pay interest every April 1 and October 1. The bonds were issued through an underwriter to whom the entity paid bond issue cost of ₱120,000. Requirements: A. Prepare all necessary journal entries for the calendar year 2021. B. Compute for the following: 1. How much is the initial valuation or carrying value of the bonds upon recognition? 2. How much cash was received upon issuance? 3. How much is the interest paid for the year ended December 31, 2021? 4. How much accrued interest payable should be recognized at year end, December 31, 2021? 5. How much is the interest expense for the year ended December 31, 2021? 6. How much is the carrying value of the bond on December 31, 2021?
On August 31, 2021, BEAST Company issued at 104 plus accrued interest, three thousand 10% bonds
with a face amount of ₱1,000 per bond. The bonds are dated April 1, 2021, mature on March 31, 2026,
and pay interest every April 1 and October 1. The bonds were issued through an underwriter to whom
the entity paid bond issue cost of ₱120,000.
Requirements:
A. Prepare all necessary
B. Compute for the following:
1. How much is the initial valuation or carrying value of the bonds upon recognition?
2. How much cash was received upon issuance?
3. How much is the interest paid for the year ended December 31, 2021?
4. How much accrued interest payable should be recognized at year end, December 31, 2021?
5. How much is the interest expense for the year ended December 31, 2021?
6. How much is the carrying
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