Reference no: EM132820676
Question - On January 1, 2021, Wonder Co. issued P20,000,000, 9%, 10-year bonds for P16,609,866.18. The bonds were issued at an effective interest rate of 12%. Interest is paid every December 31.
On December 31, 2022, after the payment of the annual interest, Wonder reacquired and retired bonds that have a face value of P4,000,000 at 88.
On April 1, 2024, Wonder reacquired and retired bonds that have a face value of P6,000,000 at 86 plus accrued interest.
1. Prepare the journal entry to record the retirement of the bonds on December 31, 2022.
2. Determine the carrying amount of the remaining bonds on December 31, 2022.
3. How much is the carrying amount of the bonds on December 31, 2023?
4. Prepare the journal entries needed in 2024.
5. How much is the interest expense incurred by Wonder in 2024?
6. Determine the carrying amount of the bonds on December 31, 2024.
7. Compute for the interest expense incurred by Wonder in 2025.
|
Show necessary journal entries to record the transaction
: Show necessary journal entries to record the transaction. On January 1, 2010, Busted Business Corporation issued ten-year, 8 percent bonds
|
|
Explain the fault of organizational structure
: Mrs. Jancy works with TBL global services, IT project management company, in the HR department. Jancy is known for her involvement not only in her duties but al
|
|
What additional assessment information would you collect
: What additional assessment information would you collect? What questions would you ask, and how would you further explore this issue with the mother?
|
|
Calculate the eps at the end of the accounting year
: Calculate the EPS at the end of the accounting year. The company had 100,000 shares of common stock issued and outstanding as on that date.
|
|
Determine the carrying amount of the remaining bonds
: On January 1, 2021, Wonder Co. issued P20,000,000, 9%, 10-year bonds for P16,609,866.18. Determine the carrying amount of the remaining bonds
|
|
Calculate the after-tax cash inflows
: TNT Ltd has a paid up share capital of 1.2 million shares of Sh.20 each. The current market price per share is Sh.36. The company has no loan capital.
|
|
Compute pension expense for the year
: Compute Pension Expense (Net Periodic Pension Cost) for the year 2020. Unexpected loss from change in projected benefit obligation, due to change in actuarial
|
|
How can the course advance your academic and career goals
: What is a technological device common in your future profession? (note: Chose carefully - You will use the technology you describe in this discussion.
|
|
Prepare journal entries under the two methods of accounting
: Produced and sold 200 units of X and 100 units of P. produced 25 units of Z. Prepare journal entries under the two methods of accounting for by-products
|