Interest on the bonds is payable semiannually on April1On July 1, 2022, bonds of P2,000,000 face amount wereMarbel Company was authorized to issue 12% bonds payableProblem 5-3 (IAA)with face amount of P5,000,000 on April 1, 2021.Interest on the bonds is payable semiannuallyand October 1. Bonds mature on April 1, 2026.The entire issue was sold on April 1, 2021 at 98 less bond jencost of P50,000.On July 1, 2022, bonds of P2,000,000 face amount wepurchased and retired at 99 plus accrued interest.Required:1 Prepare journal entries including any adjustmentsrelating to the issuance of the bonds payable for 2021and 2022.Use memorandum approach and the straight linemethod of amortization.2. Present the bonds payable in the statement of financialposition on December 31, 2022.

The procedure of entering commercial transactions for the very first time in the books of accounts…

On July 1, 2022, bonds of P2,000,000 face amount were Interest on the bonds is payable semiannually on April1 Problem 5-3 (IAA) with face amount of P5,000,000 on April 1, 2021. Interest on the bonds is payable semiannually and October 1. Bonds mature on April 1, 2026. The entire issue was sold on April 1, 2021 at 98 less bond ie cost of P50,000. purchased and retired at 99 plus accrued interest. Required: 1 Prepare journal entries including any adjustment. relating to the issuance of the bonds payable for 202 and 2022. Use memorandum approach and the straight lin method of amortization. 2. Present the bonds payable in the statement of financi. December 31. 2022

On July 1, 2022, bonds of P2,000,000 face amount were Interest on the bonds is payable semiannually on April1 Problem 5-3 (IAA) with face amount of P5,000,000 on April 1, 2021. Interest on the bonds is payable semiannually and October 1. Bonds mature on April 1, 2026. The entire issue was sold on April 1, 2021 at 98 less bond ie cost of P50,000. purchased and retired at 99 plus accrued interest. Required: 1 Prepare journal entries including any adjustment. relating to the issuance of the bonds payable for 202 and 2022. Use memorandum approach and the straight lin method of amortization. 2. Present the bonds payable in the statement of financi. 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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On January 1, 2018, Paradiso Company issued 1,000 of its 8%, $1,000 bonds at 93. Interest is payable semiannually on June 30 and December 31. The bonds will mature on December 31, 2027. If the company uses straight-line amortization, determine the amount of interest expense for 2018. answer is 87,000 how do you get there?
PB6. 13.3 Edward Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1, 2018 and received $480,000. Interest is payable semiannually. The discount is amortized using the straightline method. Prepare journal entries for the following transactions. A. July 1, 2018: entry to record issuing the bonds B. Dec. 31, 2018: entry to record payment of interest to bondholders C. Dec. 31, 2018: entry to record amortization of discount
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Answer isn’t 1,000,000
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