Determine the balances on december premium on bonds

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Yellow Companv received permission on January 1. 2018 to issue 12% bonds of P6000000 maturing on January I. 2028. Interest is payable semiannuallv on January 1 and July 1. The bonds are callable at l02 plus accrued interest. On January I. 2019, the company sold bonds of P4000000 for P4090000. The balance of the authorized bond issue was sold for cash on September I. 201 9 for P1390000 including accrued interest. The fiscal year of the corporotion ends December 31. The company uses straight line method to amortize premium and discount on bonds payable.

Required:

Problem 1: After examining the above information. you are to determine the balances of the following on December 31, 2019: 1. Premium on bonds payable 2. Discount on bonds payable 3. Book value of bonds payable

Reference no: EM132672796

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