On January 1, 20x1, Etsy Co. purchased 10%, P4,000,000 bonds for P4,171,968. The bonds are classified as financial asset measured at amortized cost. Principal on the bonds mature in four equal annual installments starting December 31, 20x1. Interest is due annually at each year-end. The effective interest rate on the bonds is 8%. How much is the current portion of the investment on December 31, 20x1?

On January 1, 20x1, Etsy Co. purchased 10%, P4,000,000 bonds for P4,171,968. The bonds are classified as financial asset measured at amortized cost. Principal on the bonds mature in four equal annual installments starting December 31, 20x1. Interest is due annually at each year-end. The effective interest rate on the bonds is 8%. How much is the current portion of the investment on December 31, 20x1?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 2PB: Charleston Inc. issued $200,000 bonds with a stated rate of 10%. The bonds had a 10-year maturity...

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