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On October 1, 2021, Complex Company purchased a 12% P3,000,000 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 February 1, 2021 and the interest is payable semiannually on February 1 and August 1. The bonds mature annually at the rate of P1,000,000 on February 1; 2022 and every February 1 thereafter. Required: a Prepare a schedule of amortization following the bond outstanding method. b. Prepare journal entries for 2021 and 2022.

On October 1, 2021, Complex Company purchased a 12% P3,000,000 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 February 1, 2021 and the interest is payable semiannually on February 1 and August 1. The bonds mature annually at the rate of P1,000,000 on February 1; 2022 and every February 1 thereafter. Required: a Prepare a schedule of amortization following the bond outstanding method. b. Prepare journal entries for 2021 and 2022.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Problem 19-8 (IAA) On October 1, 2021, Complex Company purchased a 12% P3,000,000 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 February 1, 2021 and the interest is payable semiannually on February 1 and August 1. The bonds mature annually at the rate of P1,000,000 on February 1; 2022 and every February 1 thereafter. Required: a Prepare a schedule of amortization following the bond outstanding method. b. Prepare journal entries for 2021 and 2022. Activate Windows So to Settings to activate V
Transcribed Image Text:Problem 19-8 (IAA) On October 1, 2021, Complex Company purchased a 12% P3,000,000 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 February 1, 2021 and the interest is payable semiannually on February 1 and August 1. The bonds mature annually at the rate of P1,000,000 on February 1; 2022 and every February 1 thereafter. Required: a Prepare a schedule of amortization following the bond outstanding method. b. Prepare journal entries for 2021 and 2022. Activate Windows So to Settings to activate V
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