Prepare journal entries for 2019.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The effectivę interest method of amortization is used. The
Iterest is payable annually on December 31. The bonds
Prepare journal entries for 2019.
bonds have a 10% effective yield.
Problem 20-4 (IAA)
On January 1, 2019, Fancy Company acquired P8.000,000 12%
bonds to be held as financial assets al amortized cost for
P8,400,000 plus transaction cost of P198,400.
terest is payable annually on December 31. The bonds
mature on January 1, 2024.
Required:
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