PROBLEM 25 Lord Corporation acquired bonds with a face value of P3,000,000 for P2,800,000 on January 1, 2020. The bond has a stated interest of 10%, pays interest every December 31, and matures on December 31, 2022. Requirements: 1. Prepare the necessary journal entries to record the above transactions. 2 How much is the investment in bonds on December 31, 2020? 3. Assuming that the bond is a serial bond and the P1,000.000 matures every December 31. Prepare the journal entries to record the transactions. 4. The same information in No. 3, how much is the investment in bonds on December 31, 2020?

PROBLEM 25 Lord Corporation acquired bonds with a face value of P3,000,000 for P2,800,000 on January 1, 2020. The bond has a stated interest of 10%, pays interest every December 31, and matures on December 31, 2022. Requirements: 1. Prepare the necessary journal entries to record the above transactions. 2 How much is the investment in bonds on December 31, 2020? 3. Assuming that the bond is a serial bond and the P1,000.000 matures every December 31. Prepare the journal entries to record the transactions. 4. The same information in No. 3, how much is the investment in bonds on December 31, 2020?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 77E

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