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4. Bond retirement prior to maturity date On March 1, 2022, A issued bonds with face amount of P5,000,000 for P4,750,000 The bonds are dated
4. Bond retirement prior to maturity date On March 1, 2022, A issued bonds with face amount of P5,000,000 for P4,750,000 The bonds are dated March 1, 2022 and mature in 5 years, and pay 12% interest semiannually on March 1 and September 1. All of the bonds are retired on July 1, 2025 at 97 Requirements: a. Provide the journal entry that should be recorded as an amortization of the discount or premium on bonds payable from January 1 to July 1,2025 b. Compute / determine the balance of the premium or discount on bonds payable on July 1,2025 c. Compute / determine the accrued interest on the date of retirement d. Compute / determine the total cash payment e. Compute / determine the carrying amount of the bonds payable retired f. Compute / determine the gain or loss on early retirement g. Provide the journal entry for the retirement of bonds on July 1, 2025
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