Question
On January 1, 2020, Miya Co. issued a 5% redeemable preference share with aggregate par value of P3,000,000 for P2,800,000. Transaction cost incurred amounted to
On January 1, 2020, Miya Co. issued a 5% redeemable preference share with aggregate par
value of P3,000,000 for P2,800,000. Transaction cost incurred amounted to P212,173.65. The
shareholders can present the shares for redemption at anytime beginning January 1, 2022.
Based on Miya's past experience shares are usually redeemed after 5 years. The effective
interest rate is 3%. Provide for journal entries, amortization table and all necessary
computations.
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Accounting Information Systems
Authors: Robert Hurt
2nd Edition
78111056, 978-0078111051
