bonds payable with face amount of P7,000,000 on April 1, 2021. Supersonic Company was authorized to issue 12%, 10-year bonds payable with face amount of P7,000,000 on April 1, 2021. Interest on the bonds is payable semiannually on April 1 and October 1 of each year. The bonds were sold to underwriters on April 1, 2021 at 106. The entity amortized discount or premium on bonds payable only at the end of the fiscal year, using the straight line method. Required: 1. Prepare journal entries for 2021 and 2022 including adjustments at the end of each year. Use memorandum approach. 2. Present the bonds payable in the statement of financial position on December 31, 2022.

bonds payable with face amount of P7,000,000 on April 1, 2021. Supersonic Company was authorized to issue 12%, 10-year bonds payable with face amount of P7,000,000 on April 1, 2021. Interest on the bonds is payable semiannually on April 1 and October 1 of each year. The bonds were sold to underwriters on April 1, 2021 at 106. The entity amortized discount or premium on bonds payable only at the end of the fiscal year, using the straight line method. Required: 1. Prepare journal entries for 2021 and 2022 including adjustments at the end of each year. Use memorandum approach. 2. Present the bonds payable in the statement of financial position on December 31, 2022.

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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