000. Intere 1, 2026. Th nounts to P1: rued interest
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Follow the instructions carefully.
![On January 1, 2021, PRANCER Company was authorized to issue 12% bonds with a face amount of
P5,000,000. Interest on bonds is payable semiannually on January 1 and July. Bonds mature on
January 1, 2026. The entire issue was sold on February 28, 2021 at 96 including interest. Bond issue
cost amounts to P180,000. On October 1, 2023, bonds of P2,000,000 face amount were retired at 98
plus accrued interest.
Requirements:
C. Prepare all necessary entries for calendar years 2021 and 2023 only.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F428d420b-af07-49e8-9d7b-797c7010a597%2F590972e1-6d23-42f4-8aaa-65ca62b38cf5%2Fxfr8kyr_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On January 1, 2021, PRANCER Company was authorized to issue 12% bonds with a face amount of
P5,000,000. Interest on bonds is payable semiannually on January 1 and July. Bonds mature on
January 1, 2026. The entire issue was sold on February 28, 2021 at 96 including interest. Bond issue
cost amounts to P180,000. On October 1, 2023, bonds of P2,000,000 face amount were retired at 98
plus accrued interest.
Requirements:
C. Prepare all necessary entries for calendar years 2021 and 2023 only.
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