8% annually every December 31 with a 10% effective yield.with face amount of P2,000,000 for P1,900,500 includingThe bonds mature on December 31, 2021 and pay interest oftransaction cost of P100,500 to be held as financial aasets aOn January 1, 2019, Charisma Company purchased bondaPROBLEMSProblem 20-1 (IFRS)amortized cost.8% annually every December 31 with a 10% effective welRequired:1. Prepare a table of amortization of the discount.2. Prepare journal entries for 2019, 2020 and 2021.

Answered: PROBLEMS Problem 20-1 (IFRS)

Business

Accounting

PROBLEMS Problem 20-1 (IFRS)

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

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 1RE

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Question

8% annually every December 31 with a 10% effective yield.
with face amount of P2,000,000 for P1,900,500 including
The bonds mature on December 31, 2021 and pay interest of
transaction cost of P100,500 to be held as financial aasets a
On January 1, 2019, Charisma Company purchased bonda
PROBLEMS
Problem 20-1 (IFRS)
amortized cost.
8% annually every December 31 with a 10% effective wel
Required:
1. Prepare a table of amortization of the discount.
2. Prepare journal entries for 2019, 2020 and 2021.

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