JKL Company was authorized to issue 14%, 5-year bond with face amount of P15,000,000 on January...

 

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JKL Company was authorized to issue 14%, 5-year bond with face amount of P15,000,000 on January 1, 2021. P3,000,000 of the bonds mature every December 31. Interest on the bonds is payable semiannually on June 30 and December 31 of each year. The entity amortizes discount or premium only at the end of the calendar year using the bond outstanding method. If the company sold the bonds at 95, complete the table below. FINANCIAL POSITION Current liability Bond payable Discount on bond payable Net Noncurrent liability Bond payable Discount on bond payable Net COMPREHENSIVE INCOME Total interest expense Dec 31, 2021 [a] [f] 0 [k] [p] [u] N [z] Dec 31, 2022 [b] [g] 0 [0] [q] [v] [aa] Dec 31, 2023 Dec 31, 2024 [c] [h] 0 [m] [r] [w] [bb] [d] 0 [n] [s] [x] [cc] Dec 31, 2025 [e] S 0 [o] [t] [y] [dd] JKL Company was authorized to issue 14%, 5-year bond with face amount of P15,000,000 on January 1, 2021. P3,000,000 of the bonds mature every December 31. Interest on the bonds is payable semiannually on June 30 and December 31 of each year. The entity amortizes discount or premium only at the end of the calendar year using the bond outstanding method. If the company sold the bonds at 95, complete the table below. FINANCIAL POSITION Current liability Bond payable Discount on bond payable Net Noncurrent liability Bond payable Discount on bond payable Net COMPREHENSIVE INCOME Total interest expense Dec 31, 2021 [a] [f] 0 [k] [p] [u] N [z] Dec 31, 2022 [b] [g] 0 [0] [q] [v] [aa] Dec 31, 2023 Dec 31, 2024 [c] [h] 0 [m] [r] [w] [bb] [d] 0 [n] [s] [x] [cc] Dec 31, 2025 [e] S 0 [o] [t] [y] [dd]

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The question at hand required us to find out the interest expenditure current liability and noncurrent liability created due to the issue of bonds by ... View the full answer