On January 1, 2020, Kelly Company issued bonds with the face amount of P 5,000,000, 8% serial bonds to be repaid in the amount of P 1,000,000 each year. Interest is payable annually on Dec. 31. The bonds were issued to yield 10% a year. The bonds proceeds were P 4,757,000 based on the present value at Jan. 1, 2020 of five annual payments. The entity amortized the bond discount by the interest method. What is the carrying amount of the bonds payable on Dec. 31, 2022? a. P 3,832,700 b. P 2,962,430 c. P 1,945,567 d. P 1,081,17
On January 1, 2020, Kelly Company issued bonds with the face amount of P 5,000,000, 8% serial bonds to be repaid in the amount of P 1,000,000 each year. Interest is payable annually on Dec. 31. The bonds were issued to yield 10% a year. The bonds proceeds were P 4,757,000 based on the present value at Jan. 1, 2020 of five annual payments. The entity amortized the bond discount by the interest method. What is the carrying amount of the bonds payable on Dec. 31, 2022? a. P 3,832,700 b. P 2,962,430 c. P 1,945,567 d. P 1,081,17
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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On January 1, 2020, Kelly Company issued bonds with the face amount of P 5,000,000, 8% serial bonds to be repaid in the amount of P 1,000,000 each year. Interest is payable annually on Dec. 31. The bonds were issued to yield 10% a year. The bonds proceeds were P 4,757,000 based on the present value at Jan. 1, 2020 of five annual payments. The entity amortized the bond discount by the interest method. What is the carrying amount of the bonds payable on Dec. 31, 2022?
a. P 3,832,700
b. P 2,962,430
c. P 1,945,567
d. P 1,081,171
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