Question: ABC Co. acquired 11%, Php1,000,000 bonds dated January 1, 2021 at 98 excluding interest. The bonds mature on December 31, 2023 and pays interest every

ABC Co. acquired 11%, Php1,000,000 bonds dated January 1, 2021 at 98 excluding interest. The bonds mature on December 31, 2023 and pays interest every January 1. Moreover, transaction cost was incurred amounting to Php98,000.

On December 31, 2022, the bonds were sold for 1,400,000.

Requirement:

  1. Carrying amount on January 1, 2021
  2. Amortization table
  3. Journal Entries
    ABC Co. acquired 11%, Php1,000,000 bonds dated
Problem 1. ABC Co. acquired 11%, Php1,000,000 bonds dated January 1, 2021 at 98 excluding interest. The bonds mature on December 31, 2023 and pays interest every January 1. Moreover, transaction cost was incurred amounting to Php98,000. On December 31, 2022, the bonds were sold for 1,400,000. Requirement: a. Carrying amount on January 1, 2021 b. Amortization table c. Journal Entries

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