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On October 1, 2020, Close Corporation purchased a 12% P 3,000,000 face amount bond issue for P2,700,000 excluding accrued interest to be held as financial asset at amortized cost. The date of the bonds is January 1, 2020, and the interest is payable every December 31. The bonds mature annually at the rate of P 1,000,000 on December 31, 2020 and every December 31 thereafter. On December 31, 2022, the entity will recognize the discount on amortization through

On October 1, 2020, Close Corporation purchased a 12% P 3,000,000 face amount bond issue for P2,700,000 excluding accrued interest to be held as financial asset at amortized cost. The date of the bonds is January 1, 2020, and the interest is payable every December 31. The bonds mature annually at the rate of P 1,000,000 on December 31, 2020 and every December 31 thereafter. On December 31, 2022, the entity will recognize the discount on amortization through

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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On October 1, 2020, Close Corporation purchased a 12% P 3,000,000 face amount bond issue for P2,700,000 excluding accrued interest to be held as financial asset at amortized cost. The date of the bonds is January 1, 2020, and the interest is payable every December 31. The bonds mature annually at the rate of P 1,000,000 on December 31, 2020 and every December 31 thereafter. On December 31, 2022, the entity will recognize the discount on amortization through O Crediting investment in bonds by P160,000 O Debiting interest income by P80,000 De ing investment in bonds by P160,000 O Crediting interest income by P80,000.
Transcribed Image Text:On October 1, 2020, Close Corporation purchased a 12% P 3,000,000 face amount bond issue for P2,700,000 excluding accrued interest to be held as financial asset at amortized cost. The date of the bonds is January 1, 2020, and the interest is payable every December 31. The bonds mature annually at the rate of P 1,000,000 on December 31, 2020 and every December 31 thereafter. On December 31, 2022, the entity will recognize the discount on amortization through O Crediting investment in bonds by P160,000 O Debiting interest income by P80,000 De ing investment in bonds by P160,000 O Crediting interest income by P80,000.
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