Financial Accounting and Reporting Bonds issued at Face value on an Interest Date
ABC Company's accounting year ends on December 31. On December 31, 200a, ABC issued 10-year, 12%bonds delay a aspect appreciate of P100,000, for P100,000. The obligations are limitd December 31, flatter for semiannualshare liquidations on June 30 and December 31, and aged in 10 years on December 31. ABC made therequired share and main liquidations when due.1. Demonstrate the beginning to chronicles the issuance of obligations on December 31.2. Determine the beginning to chronicles the liquidation of share for June 30.3. Ten years later, the ripeness limit, Demonstrate the beginning for the definite liquidation of share and the totality ofthe obligation.IN CONTEXT: Assuming that ABC obligations were limitd October 31, issued on the identical limit, and hired shareon October 31 and April 30. ABC must reach an adjusting beginning on December 31 to enlarge share earned forNovember and December but not hired until April 30 of the proximate year.4. Determine the beginning to chronicles the enlarged shares for November and December payable in April.5. The April 30 beginning in the proximate year would conceive the enlarged totality from December of definite year andshare outlay for January to April of this year, Demonstrate the beginning to chronicles liquidation of six (6) monthsobligation Interest.6. Since the 6-month age issue October 31 occurs delayin the identical fiscal year, demonstrate the beginning tochronicles the semiannual share liquidations.