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.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 13Q: A company issued bonds with a $100,000 face value, a 5-year term, a stated rate of 6%, and a market...

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