On May 31, 2020, VIOLET 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? What is the carrying amount of the bonds payable on December 31, 2020? * What is the gain or loss on retirement? (please put a minus (-) sign before your answer if its a loss, if a gain leave it as is)
On May 31, 2020, VIOLET 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? What is the carrying amount of the bonds payable on December 31, 2020? * What is the gain or loss on retirement? (please put a minus (-) sign before your answer if its a loss, if a gain leave it as is)
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 5PA: Volunteer Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July...
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On May 31, 2020, VIOLET 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?
What is the carrying amount of the bonds payable on December 31, 2020? *
What is the gain or loss on retirement? (please put a minus (-) sign before your answer if its a loss, if a gain leave it as is)
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