What are all the necessary journal entries for the year

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AP7,000,000 face value bonds were sold on April 1, 2015 at 106. The corporation amortizes premium only Triple V Corporation was authorized to issue P10,000,000 face value, 10%, 10 year bonds on January 1, 2015. Interest on these bonds are payable semi-annually on July 1 and January 1 of each year. at the end of the fiscal year, using the straight-line method.

On April 1, 2018 P4,000,000 face value bonds were purchased and retired at 99 plus accrued interest.

Question 1: What are all the necessary journal entries for the year 2015-2016 including adjustments relating to the bond issuance. Use memorandum approach.

Question 2: What are all the necessary journal entries for the year 2018 including adjustments relating to the retirement of the bonds.

Reference no: EM132642712

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