Prepare the journal entries up to maturity

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Question 1 - International Company issued a four year, 9%, P 500,000 bonds dated February 1 on February 1, 2022. These bonds yield rate was 10%. Interest is paid semiannually on July 31 and January 31. International Company financial year ends on December 31.

1. Prepare the amortization schedule

2. Prepare the journal entries up to maturity.

3. Prepare the financial statements presentation each year up to maturity in terms of

a. Balance Sheet

b. Income Statement

c. Cash Flow

Question 2 - National Corporation issued a 10-year, 8%, P 800,000 bonds that yield 10% on January 1, 2022. Interests are payable semiannually on June 30 and December 31. National elected to present the bonds at fair values. The changes in yield rates are due general interest rates. The yield rates at the end of 2022 and 2023 are 12% and 6%, respectively. Prepare the Journal entries in 2022 and 2023.

Reference no: EM132859839

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