On January 1, 2019, SB Company issued its 10% bonds in the face amount of P10,000,000 that mature on January 1, 2025. The bonds were issued for P9,160,000 to yield an effective rate of 12%. Interest is payable every July 1 and January 1. For the year ended December 31, 2019, what is the bond interest expense assuming the effective interest method was used? a. P1,099,200 c. P 549,600 b. P1,000,000 d. P1,102,176

On January 1, 2019, SB Company issued its 10% bonds in the face amount of P10,000,000 that mature on January 1, 2025. The bonds were issued for P9,160,000 to yield an effective rate of 12%. Interest is payable every July 1 and January 1. For the year ended December 31, 2019, what is the bond interest expense assuming the effective interest method was used? a. P1,099,200 c. P 549,600 b. P1,000,000 d. P1,102,176

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 4EA: On January 1, 2018, Wawatosa Inc. issued 5-year bonds with a face value of $200,000 and a stated...

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