Supersonic Company was authorized to issue P7, 000,000 face values, 12%, 10-years bonds on April 1, 2019. Interest on the bonds is payable semiannually on April 1 and October I of each year. The bonds were sold to underwriters on April 1, 2019 at 106. The entity amortizes discount or premium only at the end of the fiscal year, using the straight line method. Required: 1. Prepare the jourmal entries for 2019 and 2020 including adjustment at the end of each year. Use memorandum approach. 2. Present the bonds payable in the statement of financial position on December 31, 2020.

Supersonic Company was authorized to issue P7, 000,000 face values, 12%, 10-years bonds on April 1, 2019. Interest on the bonds is payable semiannually on April 1 and October I of each year. The bonds were sold to underwriters on April 1, 2019 at 106. The entity amortizes discount or premium only at the end of the fiscal year, using the straight line method. Required: 1. Prepare the jourmal entries for 2019 and 2020 including adjustment at the end of each year. Use memorandum approach. 2. Present the bonds payable in the statement of financial position on December 31, 2020.

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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