On May 1, 2021, Ligertwood Co. issued P5,000,000, 10%, three-year bonds to yield 8%. The bonds pay interest every October 31 and April 30. 1. Prepare the journal entry to recognize the accrual of interest on December 31, 2021, and the payment of interest on April 30, 2022. 2. Determine the carrying amount of the bonds at the end of each year from 2021 to 2023.

On May 1, 2021, Ligertwood Co. issued P5,000,000, 10%, three-year bonds to yield 8%. The bonds pay interest every October 31 and April 30. 1. Prepare the journal entry to recognize the accrual of interest on December 31, 2021, and the payment of interest on April 30, 2022. 2. Determine the carrying amount of the bonds at the end of each year from 2021 to 2023.

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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