What is entry on janaury to record retirement of bomds

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On january 1 20x1 an entity issues bonds with face amount of P 5 000 000 for P 5 200 000. The bonds mature on December 31 20x3 and pay annual interest of 12%. The bonds can be converted into 10 000 ordinary shares of the entity with par value per share of P 200. On January 1 20x1 the bonds are selling at 101 without the conversion featires. the effective interest rate on the bonds is 11.59%. All of the bonds are converted into ordinary sgares on january 1 20x3. However, the entity retires the bonds on january 1 20x3 at a call premium of 200 000. without the conversion features, the bods are selling on thia date at 102.

Problem A. What is the entry on janaury 1 20x3 to record the retirements of the bonds?

Reference no: EM132702135

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