Four Company issued a five-year P1,000,000, 15% bonds on January 1, 2021 for P1,110,401, an issuance price that yields 12%. Interest is payable semi-annually at half and end of the year. Required: Prepare an amortization table and the foregoing journal entries assuming: 1. The bonds reached maturity 2. The bonds were retired on October 31, 2024 at 102 plus accrued interest and assume that the company prepared appropriate entries every interest payment dates until June 30, 2024
Four Company issued a five-year P1,000,000, 15% bonds on January 1, 2021 for P1,110,401, an issuance price that yields 12%. Interest is payable semi-annually at half and end of the year. Required: Prepare an amortization table and the foregoing journal entries assuming: 1. The bonds reached maturity 2. The bonds were retired on October 31, 2024 at 102 plus accrued interest and assume that the company prepared appropriate entries every interest payment dates until June 30, 2024
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Four Company issued a five-year P1,000,000, 15% bonds on January 1, 2021 for P1,110,401,
an issuance price that yields 12%. Interest is payable semi-annually at half and end of the year.
Required: Prepare an amortization table and the foregoing
1. The bonds reached maturity
2. The bonds were retired on October 31, 2024 at 102 plus accrued interest and assume that
the company prepared appropriate entries every interest payment dates until June 30, 2024
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