CHINA Corporation, on January 1, 2021, issued 30,000, 10%, P100 bonds for P2,900,305. Principal payments on the bonds matures every year in three equal annual installments. Interest is also due annually at each year-end. The effective interest rate on the bonds is 12%. 1. Prepare the amortization table using the effective interest method. 2. Prepare the necessary journal entries for the year 2021 and 2022.

CHINA Corporation, on January 1, 2021, issued 30,000, 10%, P100 bonds for P2,900,305. Principal payments on the bonds matures every year in three equal annual installments. Interest is also due annually at each year-end. The effective interest rate on the bonds is 12%. 1. Prepare the amortization table using the effective interest method. 2. Prepare the necessary journal entries for the year 2021 and 2022.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 16E

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