"Ace Company issued P100,000 face of 6%, 10 year-bonds, with interest payable semi-annually. Ace uses straight-line method of amortization. The assumed price is P104,000. Ace Company's journal entry on the first semi-annual interest payment would include: O DEBIT of: Premium on Bonds Payable of P200. O DEBIT of: Premium on Bonds Payable of P200.

"Ace Company issued P100,000 face of 6%, 10 year-bonds, with interest payable semi-annually. Ace uses straight-line method of amortization. The assumed price is P104,000. Ace Company's journal entry on the first semi-annual interest payment would include: O DEBIT of: Premium on Bonds Payable of P200. O DEBIT of: Premium on Bonds Payable of P200.

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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