Problem 20-2 (IFRS)On January 1, 2019, Demeanor Company purchased bondswith face amount of P5,000,000 to be held as financial assetsat amortized cost. The entity paid P4,600,000 plus transactioncost of P142,000.The bonds mature on Deçember 31, 2021 and pay 6% interestannually on December 31 of each year with 8% effective yield.The bonds are quoted at 105 on December 31, 2019.The bonds are sold at 110 on December 31, 2020.Required:1. Prepare a table of amortization of the discount.2. Prepare journal entries for 2019 and 2020.520

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On January 1, 2019, Demeanor Company pure with face amount of P5,000,000 to be held as fir at amortized cost. The entity paid P4,600,000 plu cost of P142,000. The bonds mature on Decem ber 31, 2021 and pay annually on December 31 of each year with 8% et The bonds are quoted at 105 on December 31, 2 The bonds are sold at 110 on December 31, 2020 Required:

On January 1, 2019, Demeanor Company pure with face amount of P5,000,000 to be held as fir at amortized cost. The entity paid P4,600,000 plu cost of P142,000. The bonds mature on Decem ber 31, 2021 and pay annually on December 31 of each year with 8% et The bonds are quoted at 105 on December 31, 2 The bonds are sold at 110 on December 31, 2020 Required:

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 95PSA

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