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On January 1, 2016, Denver Inc. issued its 10% bonds in the face amount of P400,000, which mature on January 1, 2026. The bonds were issued for P354,000 to yield 12%, resulting in a bond discount of P46,000. Denver uses the interest method of amortizing bond discount. Interest is payable semi-annually on July 1 and January 1. For the six months ended June 30, 2016, Denver should report bond interest expense at –

On January 1, 2016, Denver Inc. issued its 10% bonds in the face amount of P400,000, which mature on January 1, 2026. The bonds were issued for P354,000 to yield 12%, resulting in a bond discount of P46,000. Denver uses the interest method of amortizing bond discount. Interest is payable semi-annually on July 1 and January 1. For the six months ended June 30, 2016, Denver should report bond interest expense at –

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 5PA: Volunteer Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July...
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On January 1, 2016, Denver Inc. issued its 10% bonds in the face amount of P400,000, which mature on January 1, 2026. The bonds were issued for P354,000 to yield 12%, resulting in a bond discount of P46,000. Denver uses the interest method of amortizing bond discount. Interest is payable semi-annually on July 1 and January 1. For the six months ended June 30, 2016, Denver should report bond interest expense at –
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