On January 1, 2020, Sunny Company issued its 9% P9,000,000 face value bonds, which matures on January 1, 2030 for P8,451,000 to yield an effective rate of 10%. Sunny Company uses straight-line method of amortization. Interest is payable annually on December 31. At December 31, 2020, what is the balance of the discount on bonds payable? a. P464,490 c. P531,900 b. P591,000 d. P472,800
On January 1, 2020, Sunny Company issued its 9% P9,000,000 face value bonds, which matures on January 1, 2030 for P8,451,000 to yield an effective rate of 10%. Sunny Company uses straight-line method of amortization. Interest is payable annually on December 31. At December 31, 2020, what is the balance of the discount on bonds payable? a. P464,490 c. P531,900 b. P591,000 d. P472,800
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 15MC: Naval Inc. issued $200,000 face value bonds at a discount and received $190,000. At the end of 2018,...
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On January 1, 2020, Sunny Company issued its 9% P9,000,000 face
a. P464,490 c. P531,900
b. P591,000 d. P472,800
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