The records of Montana Corporation on January 1, 2020 show the following accounts: Premium on bonds payable Bond issue cost P. 180,000 70,000 450,000 Accrued interest Bonds payable due January 2021 interest at 10% payable semi- annually on January 1 and July 1 9,000,000 On January 1, 2020, the following took place: Cash of P11,700,000 was made available from the sale of P12,000,000 of 10-year 12% bonds. Cash from the new issue was used for the retirement of the 10% bonds at a call price of 102. Prepare the pertinent entries.

The records of Montana Corporation on January 1, 2020 show the following accounts: Premium on bonds payable Bond issue cost P. 180,000 70,000 450,000 Accrued interest Bonds payable due January 2021 interest at 10% payable semi- annually on January 1 and July 1 9,000,000 On January 1, 2020, the following took place: Cash of P11,700,000 was made available from the sale of P12,000,000 of 10-year 12% bonds. Cash from the new issue was used for the retirement of the 10% bonds at a call price of 102. Prepare the pertinent entries.

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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