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On January 1, 2023, ACT Company issues 1,000 of its 12%, P 1,000 face value bonds at 112, a price that yields 10%. Interest on the bonds is payable annually at December 31 and matures on December 31, 2026. Transaction costs paid related to the issuance by ACT Company for underwriting fees of 20,000, and printing of bond certificates of P50,000. What is the carrying amount of the bonds on January 1, 2023? What is the interest expense for the year 2023 What is the cash outflow of ACT Company on 2024?

On January 1, 2023, ACT Company issues 1,000 of its 12%, P 1,000 face value bonds at 112, a price that yields 10%. Interest on the bonds is payable annually at December 31 and matures on December 31, 2026. Transaction costs paid related to the issuance by ACT Company for underwriting fees of 20,000, and printing of bond certificates of P50,000. What is the carrying amount of the bonds on January 1, 2023? What is the interest expense for the year 2023 What is the cash outflow of ACT Company on 2024?

Principles of Accounting Volume 1
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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On January 1, 2023, ACT Company issues 1,000 of its 12%, P 1,000 face value bonds at 112, a price that yields 10%. Interest on the bonds is payable annually at December 31 and matures on December 31, 2026. Transaction costs paid related to the issuance by ACT Company for underwriting fees of 20,000, and printing of bond certificates of P50,000.

What is the carrying amount of the bonds on January 1, 2023?

What is the interest expense for the year 2023

What is the cash outflow of ACT Company on 2024?

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