On December 31, 2020, Fame Company sold a 12% serial bond issue with face amount of P7,000,000 for P7,420,000. The bonds mature in the amount of P1,000,000 on December 31 of each year beginning December 31, 2021 and interest is payable annually. On December 31, 2022, the entity retired ₱1,000,000 bonds due on that date and in addition purchased at 105 and retired the bonds with face amount of ₱1,000,000 which were due on December 31, 2024 Required Prepare journal entries from 2020 to 2022. The bond outstanding method of amortization is used.
On December 31, 2020, Fame Company sold a 12% serial bond issue with face amount of P7,000,000 for P7,420,000. The bonds mature in the amount of P1,000,000 on December 31 of each year beginning December 31, 2021 and interest is payable annually. On December 31, 2022, the entity retired ₱1,000,000 bonds due on that date and in addition purchased at 105 and retired the bonds with face amount of ₱1,000,000 which were due on December 31, 2024 Required Prepare journal entries from 2020 to 2022. The bond outstanding method of amortization is used.
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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On December 31, 2020, Fame Company sold a 12% serial bond issue with face amount of P7,000,000 for P7,420,000.
The bonds mature in the amount of P1,000,000 on December 31 of each year beginning December 31, 2021 and interest is payable annually.
On December 31, 2022, the entity retired ₱1,000,000 bonds due on that date and in addition purchased at 105 and retired the bonds with face amount of ₱1,000,000 which were due on December 31, 2024
Required
Prepare
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