Problem 19-5 (AICPA Adapted) On October 1, 2021, Yost Company purchased 4,000 of the P1,000 face amount, 10% bonds of Pell Company for P4,400,000 which included accrued interest of P100,000. The bonds, which mature on January 1, 2028, pay interest semiannually on January 1 and July 1. The entity used the straight line method of amortizatior and appropriately recorded the bonds as financial asset a amortized cost. Required: Prepare journal entries for 2021 and 2022.

Problem 19-5 (AICPA Adapted) On October 1, 2021, Yost Company purchased 4,000 of the P1,000 face amount, 10% bonds of Pell Company for P4,400,000 which included accrued interest of P100,000. The bonds, which mature on January 1, 2028, pay interest semiannually on January 1 and July 1. The entity used the straight line method of amortizatior and appropriately recorded the bonds as financial asset a amortized cost. Required: Prepare journal entries for 2021 and 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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