ABC Corporation is authorized to issue P5,000,000 of 6%, 10-year bonds dated July 1, 2020, with interest payments on December 31, and June 30. When the bonds are issued on November 1, 2020, ABC Corporation receives cash of P5,150,000, including accrued interest. The journal entry to record the issuance of the bonds would include * O P150,000 bond discount O P50,000 bond discount O P150,000 bond premium O P50,000 bond premium
ABC Corporation is authorized to issue P5,000,000 of 6%, 10-year bonds dated July 1, 2020, with interest payments on December 31, and June 30. When the bonds are issued on November 1, 2020, ABC Corporation receives cash of P5,150,000, including accrued interest. The journal entry to record the issuance of the bonds would include * O P150,000 bond discount O P50,000 bond discount O P150,000 bond premium O P50,000 bond premium
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter9: Long-term Liabilities
Section: Chapter Questions
Problem 68E: Exercise Bonds with Annual Interest Payments Kiwi Corporation issued at par $350,000, 9% bonds on...
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![ABC Corporation is authorized to issue P5,000,000 of 6%, 10-year bonds dated July 1, 2020,
with interest payments on December 31, and June 30. When the bonds are issued on
November 1, 2020, ABC Corporation receives cash of P5,150,000, including accrued interest.
The journal entry to record the issuance of the bonds would include *
P150,000 bond discount
P50,000 bond discount
O P150,000 bond premium
P50,000 bond premium](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Faa3a2b59-bec1-4cab-8acf-51a34fde9ef4%2F0ad7f3c7-f863-40ec-8c59-b97c161005da%2Fuzaimpu_processed.png&w=3840&q=75)
Transcribed Image Text:ABC Corporation is authorized to issue P5,000,000 of 6%, 10-year bonds dated July 1, 2020,
with interest payments on December 31, and June 30. When the bonds are issued on
November 1, 2020, ABC Corporation receives cash of P5,150,000, including accrued interest.
The journal entry to record the issuance of the bonds would include *
P150,000 bond discount
P50,000 bond discount
O P150,000 bond premium
P50,000 bond premium
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