On January 1, 2020,Viper Company purchased serial bonds with face vale of P3,000,000 and stated interest rate of 12%, pa
Posted: Thu May 19, 2022 11:37 am
On January 1, 2020,Viper Company purchased serial bonds
with face vale of P3,000,000 and stated interest rate of 12%,
payable annually every December 31. The bonds are to be held to
maturity with a 10% effective yield. The bonds mature at an annual
installment of P1,000,000 every December 31.
Note: Round off present value factors to two decimal places
Required: Prepare the journal entries for 2020, 2021 and
2022
SHOW SOLUTION
with face vale of P3,000,000 and stated interest rate of 12%,
payable annually every December 31. The bonds are to be held to
maturity with a 10% effective yield. The bonds mature at an annual
installment of P1,000,000 every December 31.
Note: Round off present value factors to two decimal places
Required: Prepare the journal entries for 2020, 2021 and
2022
SHOW SOLUTION