V Company issued a 5-year, P5,000,000 face value bonds at 109 on December 31, 2020. Each P5,000
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Question:
- Upon issuance, what amount should be recorded as discount or premium on bonds? (state whether your answer is a discount or premium)
- What amount is allocated to the equity component arising from the issuance of bonds payable?
- Assuming only 25,000 share warrants are exercised, what amount is credited to share premium on the date of exercise?
Related Book For
Intermediate Accounting Volume 2
ISBN: 9781119497042
12th Canadian Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy
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