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Prepare the amortization table for the five-year period

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Question - On July 1, 2020 ABC Company purchased P10 million of XZY Company's 8% bonds due on July 1, 2025. Based on the company's business model for portfolio investments, ABC Company designates the bonds as investments measured at amortized cost.  The bonds, which pay interest semiannually on January 1 and July 1 were purchased at P8,750,000 to yield 10%.

Required -

1. Prepare the amortization table for the 5-year period.

2. Prepare the entries for 2020, 2021 and 2022.

Reference no: EM132838182

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