Triple V Corporation was authorized to issue P10,000,000 face value, 10%, 10 year bonds on January 1, 20X5. Interest on these bonds are payable semi-annually on July 1 and January 1 of each year. P7,000,000 face value bonds were sold on April 1, 20X5 at 106. The corporation amortizes premium only at the end of the fiscal year, using the straight-line method. On April 1, 20x8 P4,000,000 face value bonds were purchased and retired at 99 plus accrued interest. Required: 1. Give all the necessary journal entries for the year 20X5-20X6 including adjustments relating to the bond issuance. Use memorandum approach. 2. Give all the necessary journal entries for the year 20X8 including adjustments relating to the retirement of the bonds.
Triple V Corporation was authorized to issue P10,000,000 face value, 10%, 10 year bonds on January
1, 20X5. Interest on these bonds are payable semi-annually on July 1 and January 1 of each year.
P7,000,000 face
at the end of the fiscal year, using the straight-line method.
On April 1, 20x8 P4,000,000 face value bonds were purchased and retired at 99 plus accrued
interest.
Required: 1. Give all the necessary
to the bond issuance. Use memorandum approach.
2. Give all the necessary journal entries for the year 20X8 including adjustments relating to the
retirement of the bonds.
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