At the beginning of current year, Samal Company Issued P5,000,000 8% serial bonds, to be repaid in the amount of P1, 000, 000 each year. Interest is payable annually on December 31. The bonds Issued to yield 10% a year. The bond Proceeds were P4, 757, 000 based on the present value at January 1 of five annual payments. The entity amortized to the bond discount by the interest method. What is the carrying amount of the bonds payable on December 31? A. 4, 832, 700 B. 3,832, 700 C. 4, 805, 600 D. 3, 805, 600

At the beginning of current year, Samal Company Issued P5,000,000 8% serial bonds, to be repaid in the amount of P1, 000, 000 each year. Interest is payable annually on December 31. The bonds Issued to yield 10% a year. The bond Proceeds were P4, 757, 000 based on the present value at January 1 of five annual payments. The entity amortized to the bond discount by the interest method. What is the carrying amount of the bonds payable on December 31? A. 4, 832, 700 B. 3,832, 700 C. 4, 805, 600 D. 3, 805, 600

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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