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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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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 osset 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 outatanding method. b. Prepare journal entries for 2021 and 2022.
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 osset 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 outatanding method. b. Prepare journal entries for 2021 and 2022.
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