Problem 1:On January 1, 2011, an entity issues bonds with face amount of P5,000,00 for P5,733,129. The bondsmature on December 31, 2013 and pay annual interest of 14%, The effective interest rate is 8%.a. Prepare the amortization table for the bonds and the required journal entries.b. Prepare all the journal entries during the term of the bonds.Problem 2:On January 1, 2011, an entity issues bonds with face amount of P8,000,00 for P8,600,000. The bondsmature on December 31, 2014 and pay annual interest of 11%, The effective interest rate is 9%. Theentity incurs transactions cost of P81,645.Required:a. Compute for the initial valuation of the bonds.b. Compute for net discount or premium from the initial recognitionC. Are the periodic interest payments greater than or less than the periodic interest expenses?d. Prepare all the journal entries during the term of the bonds.

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Problem 1: On January 1, 2011, an entity issues bonds with face amount of P5,000,00 for P5,733,129. The bonds mature on December 31, 2013 and pay annual interest of 14%, The effective interest rate is 8%. a. Prepare the amortization table for the bonds and the required journal entries. Prepare all the journal entries during the term of the bonds. b.

Problem 1: On January 1, 2011, an entity issues bonds with face amount of P5,000,00 for P5,733,129. The bonds mature on December 31, 2013 and pay annual interest of 14%, The effective interest rate is 8%. a. Prepare the amortization table for the bonds and the required journal entries. Prepare all the journal entries during the term of the bonds. b.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 5PA: Volunteer Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July...

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