On July 1, 2022, RED TV Company purchased 1,000 of the P1000 face value, 8% bonds for P910,000 plus accrued interest to yield 10%. The bonds mature on January 1, 2029, pay interest annually on January 1, and are classified as trading securities. On February 13,2023, RED TV Company sold all the bonds at 92 which was also the closing quoted price of the bonds on the immediately preceding year. At what amount did RED TV present these bonds in its Statement of Financial Position on December 31, 2022 a.P0 b.P920,000 c.P915,500 d.P921,000
On July 1, 2022, RED TV Company purchased 1,000 of the P1000 face value, 8% bonds for P910,000 plus accrued interest to yield 10%. The bonds mature on January 1, 2029, pay interest annually on January 1, and are classified as trading securities. On February 13,2023, RED TV Company sold all the bonds at 92 which was also the closing quoted price of the bonds on the immediately preceding year. At what amount did RED TV present these bonds in its Statement of Financial Position on December 31, 2022 a.P0 b.P920,000 c.P915,500 d.P921,000
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 July 1, 2022, RED TV Company purchased 1,000 of the P1000 face
a.P0
b.P920,000
c.P915,500
d.P921,000
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