On July 1, 2000, Car issued 9% bonds in the face amount of P1,000,000, which mature on July 1, 2010. The bonds were issued for P939,000 to yield 10% resulting in a bond discount of P61,000. Car uses the interest method of amortizing bond discount. Interest is payable annually on June 30. At June 30, 2002, Car’s unamortized bond discount should be:

On July 1, 2000, Car issued 9% bonds in the face amount of P1,000,000, which mature on July 1, 2010. The bonds were issued for P939,000 to yield 10% resulting in a bond discount of P61,000. Car uses the interest method of amortizing bond discount. Interest is payable annually on June 30. At June 30, 2002, Car’s unamortized bond discount should be:

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 5PB: Dixon Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1,...

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