On April 1, year 1, Opera Corporation issues P60 million of 12%, 10-year bonds payable at pa Interest on the bonds is payable semiannually each April 1 and October 1. 1) The amount of cash paid to bondholders for interest during year 1, is: a) 6,6000,000 b) 5,400,000 c) 3, 600,000 d) 1,800,00 2) Interest expense on this bond issue reported in Opera Year 1, income statement is: a) 2,400,000 b) 4,800,000 c) 5,400,000 d) 7,200,000

On April 1, year 1, Opera Corporation issues P60 million of 12%, 10-year bonds payable at pa Interest on the bonds is payable semiannually each April 1 and October 1. 1) The amount of cash paid to bondholders for interest during year 1, is: a) 6,6000,000 b) 5,400,000 c) 3, 600,000 d) 1,800,00 2) Interest expense on this bond issue reported in Opera Year 1, income statement is: a) 2,400,000 b) 4,800,000 c) 5,400,000 d) 7,200,000

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 7EA: On Jan. 1, Year 1, Foxcroft Inc. issued 100 bonds with a face value of $1,000 for $104,000. The...

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