Triple V Corporation was authorized to issue P10,000,000 face value, 10%, 10 year bonds on January 1, 20X5. Interest on these bonds are payable semi-annually on July 1 and January 1 of each year. P7,000,000 face value bonds were sold on April 1, 20X5 at 106. The corporation amortizes premium only at the end of the fiscal year, using the straight-line method. On April 1, 20x8 P4,000,000 face value bonds were purchased and retired at 99 plus accrued interest. Required: 1. Give all the necessary journal entries for the year 20X5-20X6 including adjustments relating to the bond issuance. Use memorandum approach. Give all the necessary journal entries for the year 20X8 including adjustments relating to the retirement of the bonds.
Triple V Corporation was authorized to issue P10,000,000 face value, 10%, 10 year bonds on January 1, 20X5. Interest on these bonds are payable semi-annually on July 1 and January 1 of each year. P7,000,000 face value bonds were sold on April 1, 20X5 at 106. The corporation amortizes premium only at the end of the fiscal year, using the straight-line method. On April 1, 20x8 P4,000,000 face value bonds were purchased and retired at 99 plus accrued interest. Required: 1. Give all the necessary journal entries for the year 20X5-20X6 including adjustments relating to the bond issuance. Use memorandum approach. Give all the necessary journal entries for the year 20X8 including adjustments relating to the retirement of the bonds.
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 6PA: Aggies Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1,...
Related questions
Question
- Triple V Corporation was authorized to issue P10,000,000 face value, 10%, 10 year bonds on January
1, 20X5. Interest on these bonds are payable semi-annually on July 1 and January 1 of each year.
P7,000,000 face
at the end of the fiscal year, using the straight-line method.
On April 1, 20x8 P4,000,000 face value bonds were purchased and retired at 99 plus accrued
interest.
Required: 1. Give all the necessary
to the bond issuance. Use memorandum approach.
- Give all the necessary journal entries for the year 20X8 including adjustments relating to the
retirement of the bonds.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
![Excel Applications for Accounting Principles](https://www.bartleby.com/isbn_cover_images/9781111581565/9781111581565_smallCoverImage.gif)
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
![Excel Applications for Accounting Principles](https://www.bartleby.com/isbn_cover_images/9781111581565/9781111581565_smallCoverImage.gif)
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
![Cornerstones of Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781337690881/9781337690881_smallCoverImage.gif)
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning