On January 1, 2021, Borg Company issued 4,000 of its 8% P2,000 face value bonds at 97 including accrued interest. The bonds are dated October 1, 2020 and mature on October 1, 2030. Interest is payable semi-annually on April 1 and October 1. Accrued interest for the period October 1, 2010 to January 1, 2021 amounted to P160,000. On January 1, 2021, what should be reported as the carrying amount of bonds payable?
On January 1, 2021, Borg Company issued 4,000 of its 8% P2,000 face value bonds at 97 including accrued interest. The bonds are dated October 1, 2020 and mature on October 1, 2030. Interest is payable semi-annually on April 1 and October 1. Accrued interest for the period October 1, 2010 to January 1, 2021 amounted to P160,000. On January 1, 2021, what should be reported as the carrying amount of bonds payable?
Chapter6: Fixed-income Securities: Characteristics And Valuation
Section: Chapter Questions
Problem 5P
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On January 1, 2021, Borg Company issued 4,000 of its 8% P2,000 face
- On January 1, 2021, what should be reported as the carrying amount of bonds payable?
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