Please answer number 5 (include excel formula if needed) 3. On January 1, 20x1, SMUDGE BLUR Co. issued 1,000, P4,000, 12%, 3-year bonds for P4,198,948.Principal is due on December 31, 20x3 but interests are due annually every year-end. The effectiveinterest rate is 10%. How much is the unamortized discount or premium on bonds payable as ofDecember 31, 20x1?a. 198,948b. 135,204c. 138,843d. 143,1344. On January 1, 20x1, SLOPPY UNTIDY Co. issued 10%, P4,000,000 bonds at face amount. SLOPPY paidunderwriter's commission of P192,147. The bonds mature on December 31, 20x3. Interest is dueannually. The effective interest on the bond issue is approximately equal toa. 9.2659%b. 11.3692%c. 12%d. 13.5%5. On March 1, 2002, Rxne Furmiture Co. issued P700,000 of 10 percent bonds to yield 8 percent. Interestis payable semiannually on February 28 and August 31. The bonds mature in ten years. Pne FumitureCo. is a calendar-year corporation. How much is the issue price of the bonds?a. 792,335b. 795,132c. 802,336d. 809,6676. On January 1, 20x1, SPITEFUL MALICIOUS Co. issued 1,000, P4,000, 10%, 3-year bonds for P3,807,852.Principal is due on December 31, 20x3 but interests are due annually every year-end. The effectiveînterest rate is 12%. SPITEFUL Co. incorrectly used the straight line method instead of the effectiveinterest method to amortize the discount. What is the effect of the error on the carrying amount of thebonds on December 31, 20x1? (over) understateda. 7,107b. (7,107)c. 6,341d. (6,341)7. On April 1, 20x1, SQUALID FILTHY Co. issued 12%, P4,000,000 bonds dated January 1, 20x1 at 97induding accrued interest. The bonds mature in ten years and pay interest annually every year-end.How much is the initial carrying amount of the bonds?a. 3,760,000b. 3,880,000d. 3,812,341c. 4,000,000

5. On March 1, 2002, Rxne Furniture Co. issued P700,000 of 10 percent bonds to yield 8 percent. Interest is payable semiannually on February 28 and August 31. The bonds mature in ten years. Pzne Fumiture Co. is a calendar-year corporation. How much is the issue price of the bonds? a. 792,335 b. 795,132 c. 802,336 d. 809,667

5. On March 1, 2002, Rxne Furniture Co. issued P700,000 of 10 percent bonds to yield 8 percent. Interest is payable semiannually on February 28 and August 31. The bonds mature in ten years. Pzne Fumiture Co. is a calendar-year corporation. How much is the issue price of the bonds? a. 792,335 b. 795,132 c. 802,336 d. 809,667

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 15MCQ

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Similar questions

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