On January 1, 2020, Flexible Company acquired for P 1,1,50,000 the entire P 1,000,000 12% bond issue of another entity to be held as financial asset at amortized cost. Bonds of P 200,000 mature at annual interval beginning December 31, 2020. Interest is payable semi-annually on June 30 and December 31. REQUIRED: 1. Prepare the schedule of amortization following the bond outstanding method. 2. Prepare journal entries for 2020, and 2021

On January 1, 2020, Flexible Company acquired for P 1,1,50,000 the entire P 1,000,000 12% bond issue of another entity to be held as financial asset at amortized cost. Bonds of P 200,000 mature at annual interval beginning December 31, 2020. Interest is payable semi-annually on June 30 and December 31. REQUIRED: 1. Prepare the schedule of amortization following the bond outstanding method. 2. Prepare journal entries for 2020, and 2021

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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Subject : Accounting