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: P52,810 P51,000 P48,800 P43,000
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: P52,810 P51,000 P48,800 P43,000
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 6PA: Aggies Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1,...
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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:
P52,810
P51,000
P48,800
P43,000
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