On January 1, 2021, MACADAMIA Company issued 5 year bonds with face value of ₱5,000,000 at 110. The company paid bond issued cost of ₱80,000 on same date. The stated interest rate on the bonds is 8% payable annually every December 31. After consideration of bond issue costs to be initially measured, the bonds were determined to yield 6% per annum. On December 31, 2021, what should MACADAMIA report as carrying amount of the bonds payable? * ₱ 5,430,800 ₱ 5,000,000 ₱ 5,345,200 ₱ 5,414,800 On December 31, 2021, what should MACADAMIA report as interest expense for the year ended, December 31, 2021? * ₱ 295,200 ₱ 433,600 ₱ 300,000 ₱ 325,200

On January 1, 2021, MACADAMIA Company issued 5 year bonds with face value of ₱5,000,000 at 110. The company paid bond issued cost of ₱80,000 on same date. The stated interest rate on the bonds is 8% payable annually every December 31. After consideration of bond issue costs to be initially measured, the bonds were determined to yield 6% per annum. On December 31, 2021, what should MACADAMIA report as carrying amount of the bonds payable? * ₱ 5,430,800 ₱ 5,000,000 ₱ 5,345,200 ₱ 5,414,800 On December 31, 2021, what should MACADAMIA report as interest expense for the year ended, December 31, 2021? * ₱ 295,200 ₱ 433,600 ₱ 300,000 ₱ 325,200

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

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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