On May 31, 2020, BLUE Company issued 6% bonds with face amount of ₱4,000,000 for net proceeds of ₱3,677,600, a price that yields 8%. Interest is payable annually every December 31. The entity elected the fair value option. On December 31, 2020, the bonds are quoted at 97. What amount should be reported as interest expense for the year ended December 31, 2020?
On May 31, 2020, BLUE Company issued 6% bonds with face amount of ₱4,000,000 for net proceeds of ₱3,677,600, a price that yields 8%. Interest is payable annually every December 31. The entity elected the fair value option. On December 31, 2020, the bonds are quoted at 97. What amount should be reported as interest expense for the year ended December 31, 2020?
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 May 31, 2020, BLUE Company issued 6% bonds with face amount of ₱4,000,000 for net proceeds of ₱3,677,600, a price that yields 8%. Interest is payable annually every December 31. The entity elected the fair value option. On December 31, 2020, the bonds are quoted at 97. What amount should be reported as interest expense for the year ended December 31, 2020?
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