White Company issued P 8,000,000 12% bonds on December 31, 2020 at 96. Interest is payable annually on December 31. Bond maturity: December 31 1,000,000 1,000,000 1,000,000 1,000,000 2,000,000 2,000,000 8,000,000 2022 2023 2024 2025 2026 2027 Required: (1) Prepare a schedule showing the annual amortization of the bond discount using bond outstanding method. (2) Prepare journal entries from 2020 to 2023.
White Company issued P 8,000,000 12% bonds on December 31, 2020 at 96. Interest is payable annually on December 31. Bond maturity: December 31 1,000,000 1,000,000 1,000,000 1,000,000 2,000,000 2,000,000 8,000,000 2022 2023 2024 2025 2026 2027 Required: (1) Prepare a schedule showing the annual amortization of the bond discount using bond outstanding method. (2) Prepare journal entries from 2020 to 2023.
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 5MC: On January 1, a company issued a 5-year $100,000 bond at 6%. Interest payments on the bond of $6,000...
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