On January 1, 2019, Langka Inc. issued 9% bonds in the face amount of P5,000,000 which mature on January 1, 2019. The bonds were issued for P4,695,000 to yield 10%. Interest is payable annually on December 31. The entity used the interest method of amortizing bond discount. What is the carrying amount of the bonds on January 1, 2019?
On January 1, 2019, Langka Inc. issued 9% bonds in the face amount of P5,000,000 which mature on January 1, 2019. The bonds were issued for P4,695,000 to yield 10%. Interest is payable annually on December 31. The entity used the interest method of amortizing bond discount. What is the carrying amount of the bonds on January 1, 2019?
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 4EB: Chung Inc. issued $50,000 of 3-year bonds on January 1, 2018, with a stated rate of 4% and a market...
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On January 1, 2019, Langka Inc. issued 9% bonds in the face amount of P5,000,000 which mature on January 1, 2019. The bonds were issued for P4,695,000 to yield 10%. Interest is payable annually on December 31. The entity used the interest method of amortizing bond discount.
What is the carrying amount of the bonds on January 1, 2019?
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