On December 31, 2022, For Company issued P6,000,000 of 12% bonds payable maturing in five years. The bonds pay interest semiannually. The bonds include detachable stock warrants For the bondholder the right to purchase for P150 per share of P100 par value ordinary shares within the next three years. The bonds and warrants were issued at 120. The value of the warrants at the time of issuance was P800,000. The market rate of interest for similar bonds without the warrants is 10%. On December 31, 2022, the bonds payable should be reported at (round off present value factors to two decimal places)
On December 31, 2022, For Company issued P6,000,000 of 12% bonds payable maturing in five years. The bonds pay interest semiannually. The bonds include detachable stock warrants For the bondholder the right to purchase for P150 per share of P100 par value ordinary shares within the next three years. The bonds and warrants were issued at 120. The value of the warrants at the time of issuance was P800,000. The market rate of interest for similar bonds without the warrants is 10%. On December 31, 2022, the bonds payable should be reported at (round off present value factors to two decimal places)
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 5P: Bats Corporation issued 800,000 of 12% face value bonds for 851,705.70. The bonds were dated and...
Related questions
Question
On December 31, 2022, For Company issued P6,000,000 of 12% bonds payable maturing in five years. The bonds pay interest semiannually. The bonds include detachable stock warrants For the bondholder the right to purchase for P150 per share of P100 par value ordinary shares within the next three years. The bonds and warrants were issued at 120. The value of the warrants at the time of issuance was P800,000. The market rate of interest for similar bonds without the warrants is 10%. On December 31, 2022, the bonds payable should be reported at (round off present value factors to two decimal places)
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 3 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT