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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 * 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

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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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
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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