What entry on december to record retirement of bonds

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Reference no: EM132700703

Problem 1: On january 1 20x1 an entity issues 14% 3 year P 5,000,000 bonfs at a price that reflects a yield rate of 8%. Requirements a. what is the issue price of the bonds.

Problem 2: On january 1 20x1 an entity issues vonds with face amount of P 5,000,000 for P 5,773,129. The bonds mature on December 31 20x3 and pay annual interest of 14%. The effective interest rate is 8%. On december 31 20x2 after paying the annual interest the entity retires the bonds at a call premium of P 400,000.

Requirements:

A. what is the entry on December 31 20x2 to record the retirement of the bonds.

Reference no: EM132700703

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