On January 1, 2019, Charlie Company. issued its 10 percent bonds in the face amount of P1,500,000. They mature on January 1, 2029. The bonds were issued for P1,329,000 to yield 12 percent, resulting in bond discount of P171,000. Charlie uses the effective- interest method of amortizing bond discount. Interest is payable July 1 and January 1. For the year ended December 31, 2019, Charlie should report bond interest expense of
On January 1, 2019, Charlie Company. issued its 10 percent bonds in the face amount of P1,500,000. They mature on January 1, 2029. The bonds were issued for P1,329,000 to yield 12 percent, resulting in bond discount of P171,000. Charlie uses the effective- interest method of amortizing bond discount. Interest is payable July 1 and January 1. For the year ended December 31, 2019, Charlie should report bond interest expense of
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 8RE
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On January 1, 2019, Charlie Company. issued its 10 percent bonds in the face amount of P1,500,000. They mature on January 1, 2029. The bonds were issued for P1,329,000 to yield 12 percent, resulting in bond discount of P171,000. Charlie uses the effective- interest method of amortizing bond discount. Interest is payable July 1 and January 1. For the year ended December 31, 2019, Charlie should report bond interest expense of
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