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.
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 4EB: Chung Inc. issued $50,000 of 3-year bonds on January 1, 2018, with a stated rate of 4% and a market...
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![The records of Montana Corporation on January 1, 2020 show the following accounts:
Premium on bonds payable
P.
180,000
70.000
450,000
Bond issue cost
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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0497190f-823b-49ea-8761-7b567be93d4e%2Fbeffebd2-6930-443e-be16-ff700af6c06a%2Frh692w8_processed.png&w=3840&q=75)
Transcribed Image Text:The records of Montana Corporation on January 1, 2020 show the following accounts:
Premium on bonds payable
P.
180,000
70.000
450,000
Bond issue cost
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.
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