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What is the journal entry to record issuance of the bonds on January 1, 2019? Dr. Cash, P500,000 and Cr. Bonds Payable, P500,000 Dr. Cash, P500,000 Cr. Premium on Bonds Payable, P28,253 & Cr. Bonds Payable P471,747 Dr. Cash, P471,747; Dr. Discounts on Bonds Payable, P28,253 & Cr. Bonds Payable P500,000 Dr. Cash, P471,747; Dr. Interest Expense, P28,253 and Cr. Bonds Payable P500,000

What is the journal entry to record issuance of the bonds on January 1, 2019? Dr. Cash, P500,000 and Cr. Bonds Payable, P500,000 Dr. Cash, P500,000 Cr. Premium on Bonds Payable, P28,253 & Cr. Bonds Payable P471,747 Dr. Cash, P471,747; Dr. Discounts on Bonds Payable, P28,253 & Cr. Bonds Payable P500,000 Dr. Cash, P471,747; Dr. Interest Expense, P28,253 and Cr. Bonds Payable P500,000

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter9: Long-term Liabilities
Section: Chapter Questions
Problem 15MCQ
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What is the journal entry to record issuance of the bonds on January 1, 2019?

Dr. Cash, P500,000 and Cr. Bonds Payable, P500,000

Dr. Cash, P500,000 Cr. Premium on Bonds Payable, P28,253 & Cr. Bonds Payable P471,747

Dr. Cash, P471,747; Dr. Discounts on Bonds Payable, P28,253 & Cr. Bonds Payable P500,000

Dr. Cash, P471,747; Dr. Interest Expense, P28,253 and Cr. Bonds Payable P500,000

Japchae Corp. issued a P500,000, 10-year bond on January 1, 2019. The company's year-end is December 31, and financial statements are prepared annually. The amortization and interest schedule below reflects the bond issuance and the subsequent interest payments and charges. Date 1/1/2019 Interest Paid Interest Expense Amount Unamortized Carrying Value 28,253.00 471,747.00 12/31/2019 55,000.00 56,609.64 26,643.36 473,356.64 12/31/2020 55,000.00 56,802.80 24,840.56 475,159.44
Transcribed Image Text:Japchae Corp. issued a P500,000, 10-year bond on January 1, 2019. The company's year-end is December 31, and financial statements are prepared annually. The amortization and interest schedule below reflects the bond issuance and the subsequent interest payments and charges. Date 1/1/2019 Interest Paid Interest Expense Amount Unamortized Carrying Value 28,253.00 471,747.00 12/31/2019 55,000.00 56,609.64 26,643.36 473,356.64 12/31/2020 55,000.00 56,802.80 24,840.56 475,159.44
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