On January 1, 2020, ABC co. issued 3-year bonds with a face value of P1,200,000 and stated interest of 8% per year payable annually on December 31. The bonds were acquired to yield 10%. The bonds were appropriately classified as financial liability at amortized cost. Compute for the interest expense for 2020.
On January 1, 2020, ABC co. issued 3-year bonds with a face value of P1,200,000 and stated interest of 8% per year payable annually on December 31. The bonds were acquired to yield 10%. The bonds were appropriately classified as financial liability at amortized cost. Compute for the interest expense for 2020.
On January 1, 2020 ABC Co. issued 3-year bonds with a face value of P1,200,000 and stated interest of 8% per year. The bonds mature in 3 equal annual installments every December 31. The interest is also payable every December 31. The bonds were acquired to yield 10%. The bonds were appropriately classified as financial liability at amortized cost. Compute for the carrying value on December 31, 2021.
On January 1, 2020 ABC Co. issued 10% 3-year bonds with face value of P5,000,000 at 98. Additionally, ABC Co. paid a bond issue cost of P140,000. After consideration of bond issue costs to the initial measurement, the calculated effective interest rate is 12%. The interest is payable annually on December 31. ABC Co. uses the effective interest method in amortizing discount and issue cost. What is the value of premium or discount on December 31, 2020?
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