On January 1, 2006, Taguig Company issued 3-year bonds with face value of P5,000,000 at 99. The nominal rate is 10% and the interest is payable annually on December 31. Additionally, Taguig Company paid bond issue cost of P150,000. Use four decimal points. What is the interest expense for 2006 using the effective interest method?

On January 1, 2006, Taguig Company issued 3-year bonds with face value of P5,000,000 at 99. The nominal rate is 10% and the interest is payable annually on December 31. Additionally, Taguig Company paid bond issue cost of P150,000. Use four decimal points. What is the interest expense for 2006 using the effective interest method?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 4EA: On January 1, 2018, Wawatosa Inc. issued 5-year bonds with a face value of $200,000 and a stated...

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