KCC Corporation has the following transactions for the year. Prepare all the necessary entries for each item. Round all amounts to the nearest peso. 2008 Issued P5,000,000 of 10-year, 15% callable bonds at an effective interest rate of 14% receiving cash of P5,529,704. Interest is payable semiannually on September 1 and March 1. Accrued 4 months of interest on the bonds. Amortized the bond Sept 2 Dec. 31 premium for 4 months. Closed the interest expense account. 2009 Mar 1 Paid the semiannual interest on the bonds.

KCC Corporation has the following transactions for the year. Prepare all the necessary entries for each item. Round all amounts to the nearest peso. 2008 Issued P5,000,000 of 10-year, 15% callable bonds at an effective interest rate of 14% receiving cash of P5,529,704. Interest is payable semiannually on September 1 and March 1. Accrued 4 months of interest on the bonds. Amortized the bond Sept 2 Dec. 31 premium for 4 months. Closed the interest expense account. 2009 Mar 1 Paid the semiannual interest on the bonds.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 7MCQ

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