On January 1, 2020, CAB Co. issued 9% bonds in the amount of P2,500,000, which mature on January 1, 2030. The bonds were issued for P2,347,500 to yield 10%. Interest is payable annually on December 31. The entity uses the interest method of amortization. What is carrying amount of the bonds payable on June 30, 2020? a. P2,347,500 b. P2,352,375 c. P2,355,125 d. P2,500,000 e. answer not given
On January 1, 2020, CAB Co. issued 9% bonds in the amount of P2,500,000, which mature on January 1, 2030. The bonds were issued for P2,347,500 to yield 10%. Interest is payable annually on December 31. The entity uses the interest method of amortization. What is carrying amount of the bonds payable on June 30, 2020? a. P2,347,500 b. P2,352,375 c. P2,355,125 d. P2,500,000 e. answer not given
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
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 1MC
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On January 1, 2020, CAB Co. issued 9% bonds in the amount of P2,500,000, which mature on January 1, 2030. The bonds were issued for P2,347,500 to yield 10%. Interest is payable annually on December 31. The entity uses the interest method of amortization. What is carrying amount of the bonds payable on June 30, 2020?
a. P2,347,500
b. P2,352,375
c. P2,355,125
d. P2,500,000
e. answer not given
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