On January 1, 2021, Malya Company issued 500, P1,000 face value 6%, 5-year term bonds and issued to yield a rate of 8%. On December 31, 2023, the entire bonds were retired through the issuance of 50,000 shares of its P5 par value ordinary shares currently selling at P9. The fair value of the liability is P425,000. Required: Prepare the journal entries upon the retirement of the bonds.

On January 1, 2021, Malya Company issued 500, P1,000 face value 6%, 5-year term bonds and issued to yield a rate of 8%. On December 31, 2023, the entire bonds were retired through the issuance of 50,000 shares of its P5 par value ordinary shares currently selling at P9. The fair value of the liability is P425,000. Required: Prepare the journal entries upon the retirement of the bonds.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 15MC: Naval Inc. issued $200,000 face value bonds at a discount and received $190,000. At the end of 2018,...

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