CASE 1

On January 1, 20x1 , ABC Co. acquired 8%, P1,000,000 bonds. The principal is due on December 31, 20x5
but interest is due annually starting December 31, 20x1. The effective interest rate is 12%. The bonds
are classified investment measured at amortized cost.

Required : Journalize the entries related to the purchase and amortization of the bond

CASE 2

On January 1, 20x1 , ABC Co. acquired 12%, P1,000,000 bonds. The principal is due on December 31,
20x5 but interest is due annually starting December 31, 20x1. The effective interest rate is 8%. The
bonds are classified investment measured at amortized cost.

Required : Journalize the entries related to the purchase and amortization of the bond

CASE 3

On January 1 , 20x1 , ABC Co. acquired 12% , P1,000,000 bonds . The bonds were classified as
investment measured at amortized cost. Principal on those bonds mature as follows

December 31, 20x1 200,000

December 31, 20x2 200,000
December 31, 20x3 200,000
December 31, 20x4 200,000
December 31, 20x5 200,000

The interest is due annually at year-end. The effective interest rate on the bonds is 8%

Required : Journalize the entries related to the purchase and amortization of the bond

CASE 4

On January 1 , 20x1 , ABC Co. acquired 8% , P1,500,000 bonds . The bonds were classified as investment
measured at amortized cost. Principal on those bonds mature as follows

December 31, 20x1 100,000

December 31, 20x2 200,000
December 31, 20x3 300,000
December 31, 20x4 400,000
December 31, 20x5 500,000

The interest is due annually at year-end. The effective interest rate on the bonds is 12%

Required : Journalize the entries related to the purchase and amortization of the bond