Elizabeta Corporation, a calendar year entity, issued bonds with the following terms: Face value of bonds P 5,000,000 Issue price 5,300,000 Date of bonds January 1, 2021 Date of issue January 1, 2021 Interest rate 12% Semi-annual interest dates June 30 and December 31 The bonds mature on every December 31 of each year at the rate of P1,000,000 for 5 years. Elizabeta uses the bond outstanding method in amortizing discounts, premiums and bond issue costs. The amount of interest expense to be recognized relating to the bonds in 2022 is: The carrying amount of the bonds as of December 31, 2023 is:

Elizabeta Corporation, a calendar year entity, issued bonds with the following terms: Face value of bonds P 5,000,000 Issue price 5,300,000 Date of bonds January 1, 2021 Date of issue January 1, 2021 Interest rate 12% Semi-annual interest dates June 30 and December 31 The bonds mature on every December 31 of each year at the rate of P1,000,000 for 5 years. Elizabeta uses the bond outstanding method in amortizing discounts, premiums and bond issue costs. The amount of interest expense to be recognized relating to the bonds in 2022 is: The carrying amount of the bonds as of December 31, 2023 is:

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

On January 1, a company issued a 5-year $100,000 bond at 6%. Interest payments on the bond of $6,000 are to be made annually. If the company received proceeds of $112,300, how would the bonds issuance be quoted? A. 1.123 B. 112.30 C. 0.890 D. 89.05
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