On January 1, 2021, Jackie Company issued at 76 (gross of issuance costs of P46,260), 6% bonds which required interest payments of P450,000 every December 31 for 5 years. 1 How much is the interest expense for 2021? 2 How much is the carrying amount of the bonds as of December 31, 2022? 3 How much is the discount amortization during 2023?

On January 1, 2021, Jackie Company issued at 76 (gross of issuance costs of P46,260), 6% bonds which required interest payments of P450,000 every December 31 for 5 years. 1 How much is the interest expense for 2021? 2 How much is the carrying amount of the bonds as of December 31, 2022? 3 How much is the discount amortization during 2023?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 6MC: On July 1, a company sells 8-year $250,000 bonds with a stated interest rate of 6%. If interest...

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