White Company issued P 8,000,000 12% bonds on December 31, 2020 at 96. Interest is payable annually on December 31. Bond maturity: December 31 1,000,000 1,000,000 1,000,000 1,000,000 2,000,000 2,000,000 8,000,000 2022 2023 2024 2025 2026 2027 Required: (1) Prepare a schedule showing the annual amortization of the bond discount using bond outstanding method. (2) Prepare journal entries from 2020 to 2023.
White Company issued P 8,000,000 12% bonds on December 31, 2020 at 96. Interest is payable annually on December 31. Bond maturity: December 31 1,000,000 1,000,000 1,000,000 1,000,000 2,000,000 2,000,000 8,000,000 2022 2023 2024 2025 2026 2027 Required: (1) Prepare a schedule showing the annual amortization of the bond discount using bond outstanding method. (2) Prepare journal entries from 2020 to 2023.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![White Company issued P 8,000,000 12% bonds on December 31, 2020 at 96. Interest is payable annually on December
31. Bond maturity:
December 31
2022
1,000,000
1,000,000
1,000,000
1,000,000
2,000,000
2,000,000
8,000,000
2023
2024
2025
2026
2027
Required: (1) Prepare a schedule showing the annual amortization of the bond discount using bond outstanding method.
(2) Prepare journal entries from 2020 to 2023.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd6029f6c-ac7c-49dd-afe9-11ed2680132f%2F617937a2-8466-41a5-a112-bd4821e141df%2Fcicyef7_processed.jpeg&w=3840&q=75)
Transcribed Image Text:White Company issued P 8,000,000 12% bonds on December 31, 2020 at 96. Interest is payable annually on December
31. Bond maturity:
December 31
2022
1,000,000
1,000,000
1,000,000
1,000,000
2,000,000
2,000,000
8,000,000
2023
2024
2025
2026
2027
Required: (1) Prepare a schedule showing the annual amortization of the bond discount using bond outstanding method.
(2) Prepare journal entries from 2020 to 2023.
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