What is the journal entry to record issuance of the bonds on January 1, 2019?Dr. Cash, P500,000 and Cr. Bonds Payable, P500,000Dr. Cash, P500,000 Cr. Premium on Bonds Payable, P28,253 & Cr. Bonds Payable P471,747Dr. Cash, P471,747; Dr. Discounts on Bonds Payable, P28,253 & Cr. Bonds Payable P500,000Dr. 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 financialstatements are prepared annually. The amortization and interest schedule below reflects the bond issuance and thesubsequent interest payments and charges.Date1/1/2019Interest PaidInterest ExpenseAmount UnamortizedCarrying Value28,253.00471,747.0012/31/201955,000.0056,609.6426,643.36473,356.6412/31/202055,000.0056,802.8024,840.56475,159.44

If the Bonds are issued at less then face value the the bonds are discount bonds.

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

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 8RE

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