PROBLEM 25 Lord Corporation acquired bonds with a face value of P3,000,000 for P2,800,000 on January 1, 2020. The bond has a stated interest of 10%, pays interest every December 31, and matures on December 31, 2022. Requirements: 1. Prepare the necessary journal entries to record the above transactions. 2 How much is the investment in bonds on December 31, 2020? 3. Assuming that the bond is a serial bond and the P1,000.000 matures every December 31. Prepare the journal entries to record the transactions. 4. The same information in No. 3, how much is the investment in bonds on December 31, 2020?
PROBLEM 25 Lord Corporation acquired bonds with a face value of P3,000,000 for P2,800,000 on January 1, 2020. The bond has a stated interest of 10%, pays interest every December 31, and matures on December 31, 2022. Requirements: 1. Prepare the necessary journal entries to record the above transactions. 2 How much is the investment in bonds on December 31, 2020? 3. Assuming that the bond is a serial bond and the P1,000.000 matures every December 31. Prepare the journal entries to record the transactions. 4. The same information in No. 3, how much is the investment in bonds on December 31, 2020?
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 77E
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