On October 1, 2021, POGI company purchased 4000 of the P1000 face amount, 10% bonds of GANDA Company for P4,462,500 which included accrued interest of P200,000. The bonds which mature on January 1, 2028, pay interest semiannually on January 1 and July 1. The entity used the straight line method of amortization and approprietely recorded the bonds as financial asset at amortized cost. What is the carrying amount of the bonds on December 31, 2021?
On October 1, 2021, POGI company purchased 4000 of the P1000 face amount, 10% bonds of GANDA Company for P4,462,500 which included accrued interest of P200,000. The bonds which mature on January 1, 2028, pay interest semiannually on January 1 and July 1. The entity used the straight line method of amortization and approprietely recorded the bonds as financial asset at amortized cost. What is the carrying amount of the bonds on December 31, 2021?
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 October 1, 2021, POGI company purchased 4000 of the P1000 face amount, 10% bonds of GANDA Company for P4,462,500 which included accrued interest of P200,000. The bonds which mature on January 1, 2028, pay interest semiannually on January 1 and July 1. The entity used the
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