Question
a. On January 1, 2019, Gabiola Company issued 10% bonds in the amount of P5,000,000 which mature on January 1, 2029. The bonds were issued
a. On January 1, 2019, Gabiola Company issued 10% bonds in the amount of P5,000,000 which mature on January 1, 2029.
The bonds were issued for P5,675,000 to yield 8% resulting in the bond premium of P675,000
The entity used the interest method of amortizing bond premium. Interest is payable annually on December 31.
On December 31, 2019, what is the adjusted unamortized bond premium?
b. On December 31, 2019, Boheme Company reported 9% bonds payable due December 31, 2024 with a carrying amount of P15,405,000.
The bonds were issued on December 31, 2015 and had a face amount of P15,000,000 with interest payable semiannually on June 30 and December 31.
On December 31, 2019 the entity retired P5,000,000 of these bonds at 99
What amount should be reported as gain on the retirement of bonds for 2019?
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Financial Accounting An Integrated Statements Approach
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
2nd Edition
324312113, 978-0324312119
