Reference no: EM132622084
Question - INVESTMENT IN DEBT SECURITIES (BONDS)
On January 1, 2018, Quezon Company acquired 10% bonds in the face amount of P2,000,000. The bonds are dated January 1, 2018 and will mature on December 31, 2021. The bonds were acquired to yield 12% interest. Interest is payable every December 31.
Requirements -
A) Prepare, all the necessary entries from 2018 up to 2021.
B) Prepare, all the necessary entries from 2018-2021 assuming the principal amount will be paid as follows:
December 31, 2018- 500,000
December 31, 2019- 500,000
December 31, 2020- 500,000
December 31, 2021- 500,000
C) Prepare, all the necessary entries from 2018-2021 assuming the principal amount will be paid as follows:
December 31, 2018- 750,000
December 31, 2019- 600,000
December 31, 2020- 250,000
December 31, 2021- 400,000
D) Using the original information;
On April 1, 2020, the bonds were sold at 105 including accrued interest. Prepare the entry for the sale transaction.