Show the solution in good accounting form On July 1, 2002, Roger Co. paid P1,198,000 for10% 20-year bonds with a face amount ofP1,000,000. Interest is paid on December 31 andJune 30. The bonds were purchased to yield 8%.Roger uses the effective interest method torecognize interest income from investment. Whatshould be reported as carrying amount of thebonds in Roger's December 31, 2002 balancesheet?P1,207,000P1,198,000P1,195,920P1,103,050

Carrying amount refers to the asset original cost which is shown in the balance sheet of the company…

Answered: On July 1, 2002, Roger Co. paid…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 1MC

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On July 1, 2002, Roger Co. paid P1,198,00 10% 20-year bonds with a face amount of P1,000,000. Interest is paid on December June 30. The bonds were purchased to yie Roger uses the effective interest method t