On June 30, 2022, the remaining bonds were reacquired at 106 plus accrued interest and refunded with an issue of P3,500,000 8% bonds which were sold at 100.
On June 30, 2022, the remaining bonds were reacquired at 106 plus accrued interest and refunded with an issue of P3,500,000 8% bonds which were sold at 100.
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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Gentleness Company issued P5,000,000 10% bonds on January 1, 2017 with a tenor of 10 years. Interest is payable every January 1 and July 1. The entire issue was sold on April 1, 2017 at 105 plus accrued interest.
On April 1, 2022, P2,000,000 of the bond issue was reacquired by the company and retired at 98 plus accrued interest.
On June 30, 2022, the remaining bonds were reacquired at 106 plus accrued interest and refunded with an issue of P3,500,000 8% bonds which were sold at 100.
Based on the given information and the result of your audit, determine the following (Use
- Interest expense in 2017.
- Carrying amount of bonds payable as of December 31, 2017.
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