Problem 5-4 (IAA) On January 1, 2021, Lyka Company issued 12% bonds payable with face amount of P4,000,000 for P4,200,000. Interest is payable annually on December 31 and the bonds mature on January 1, 2026. On December 31, 2021, bonds with face amount of P1,000,000 were redeemed at 95. The entity used the straight line method of amortization. Required: 1. Prepare journal entries in 2021 and 2022. 2. Present the bonds payable on December 31, 2022.

Problem 5-4 (IAA) On January 1, 2021, Lyka Company issued 12% bonds payable with face amount of P4,000,000 for P4,200,000. Interest is payable annually on December 31 and the bonds mature on January 1, 2026. On December 31, 2021, bonds with face amount of P1,000,000 were redeemed at 95. The entity used the straight line method of amortization. Required: 1. Prepare journal entries in 2021 and 2022. 2. Present the bonds payable on December 31, 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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Subject : Accounting
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