JJ Company issued an 8%, P8,400,000 bonds at 120 on January 1, 2019. Interest on these bonds
Fantastic news! We've Found the answer you've been seeking!
Question:
JJ Company issued an 8%, P8,400,000 bonds at 120 on January 1, 2019. Interest on these bonds is paid every June 30 and December 31. Moreover, bonds mature every December 31 at the following rates: 2020, P1,800,000; 2022, P3,000,000; 2023, P1,500,000; and 2024, 2,100,000, respectively. On December 31, 2020, P800,000 bonds maturing on December 31, 2023 were retired at 98.
1. Compute for the issue price of the bonds on January 1, 2019.
2. Compute for the bonds outstanding for the year 2020.
3. Compute for the gain/loss on retirement.
4. Compute for the premium amortization for 2021 after the retirement of bonds.
Related Book For
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date: