On January 1, 2020, Marimar Company issued 10,000 of its 12%, P1,000 face value 5-year bonds at 105. Interest on the bonds is payable annually every December 31. In connection with the sale of these bonds, Marimar paid the following expenses: Promotion costs P100,000 Engraving and printing 400,000 Underwriter's commissions 500,000 How much is the initial carrying value of the bond?
On January 1, 2020, Marimar Company issued 10,000 of its 12%, P1,000 face value 5-year bonds at 105. Interest on the bonds is payable annually every December 31. In connection with the sale of these bonds, Marimar paid the following expenses: Promotion costs P100,000 Engraving and printing 400,000 Underwriter's commissions 500,000 How much is the initial carrying value of the bond?
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, Marimar Company issued 10,000 of its 12%, P1,000 face value 5-year bonds at 105. Interest on the bonds is payable annually every December 31. In connection with the sale of these bonds, Marimar paid the following expenses:
Promotion costs P100,000
Engraving and printing 400,000
Underwriter's commissions 500,000
How much is the initial carrying
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