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000. Intere 1, 2026. Th nounts to P1: rued interest

000. Intere 1, 2026. Th nounts to P1: rued interest

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
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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