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Prepare the amortization table

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Reference no: EM132681828

Question - On January 1, 20x1, Athena Co. acquired P1,000,000 face amount, 14% bonds for P1,060,747. The bonds mature in 4 years time but interest is due annually every January 1. The bonds are measured at amortized cost. The effective interest rate is 12%.

Requirements - Provide all step by step solutions

a. Prepare the amortization table

b. Prepare all the journal entries

c. How much is the unamortized discount or premium on December 31, 20x2?

d. Assume all the bonds were sold on January 1, 20x3 at 110. Transaction costs incurred on sale amounted to P40,000.

Reference no: EM132681828

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