On January 1, 2009, Beta Company issued 5,000 of its 12%, P1,000 face value bonds for P5,600,000, including accrued interest. The bonds are dated October 1, 2008, mature on October 1, 2018, and pay interest annually on October 1. The bonds were issued through an underwriter to whom Beta paid bond issue cost of P150,000. On January 1, 2009, what should Beta report as bonds payable?

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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On January 1, 2009, Beta Company issued 5,000 of its 12%, P1,000 face value bonds for P5,600,000, including accrued interest. The bonds are dated October 1, 2008, mature on October 1, 2018, and pay interest annually on October 1. The bonds were issued through an underwriter to whom Beta paid bond issue cost of P150,000. On January 1, 2009, what should Beta report as bonds payable?

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