On December 31, 2017, ABC Company had P1,000,000 of short term notes payable due February 7, 2018. On January 15, 2018, the company issued bonds with a face value of P900,000 at 96; brokerage fees and other costs of issuance were P3,450. On January 22, 2018, the proceeds from the bond issue plus additional gas held by the company on December 31, 2017 were used to liquidate the P1,000,000 of short-term notes. The December 31, 2017 balance sheet is issued on February 12, 2018. Prepare the journal entry the receipt of cash and liquidation of the note in one entry.

On December 31, 2017, ABC Company had P1,000,000 of short term notes payable due February 7, 2018. On January 15, 2018, the company issued bonds with a face value of P900,000 at 96; brokerage fees and other costs of issuance were P3,450. On January 22, 2018, the proceeds from the bond issue plus additional gas held by the company on December 31, 2017 were used to liquidate the P1,000,000 of short-term notes. The December 31, 2017 balance sheet is issued on February 12, 2018. Prepare the journal entry the receipt of cash and liquidation of the note in one entry.

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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