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Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Problem 19-8 (IAA)
On October 1, 2021, Complex Company purchased a 12%
P3.000,000 face amount bond issue for P2,700,000 excluding
accrued interest to be held as financial asset at amortized
cost.
The date of the bonds is February 1, 2021 and the interest is
payable semiannually on February 1 and August 1.
The bonds mature annually at the rate of P1,000,000 on
February 1, 2022 and every February 1 thereafter.
Required:
a. Prepare a schedule of amortization following the bond
outstanding method.
. Prepare journal entries for 2021 and 2022.
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