On January 1, 2011, Mormont Company issued 9% bonds in the face amount of P2,500,000 which mature on January 1, 2021. The bonds were issued to yield 10%. Interest is paid every July 1 and Dec 31. How much is the premium or discount upon issuance? (Indicate if premium/ discount.)

On January 1, 2011, Mormont Company issued 9% bonds in the face amount of P2,500,000 which mature on January 1, 2021. The bonds were issued to yield 10%. Interest is paid every July 1 and Dec 31. How much is the premium or discount upon issuance? (Indicate if premium/ discount.)

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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Please answer, round off final answers to two decimal places

On January 1, 2011, Mormont Company issued 9% bonds in the face amount of P2,500,000 which
mature on January 1, 2021. The bonds were issued to yield 10%. Interest is paid every July 1 and Dec
31. How much is the premium or discount upon issuance? (Indicate if premium/ discount.)

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