Problem No. 3 On July 1, 2014, LINE Inc. issued a 4-year, P1,000,000 bonds payable dated January 1, 2014, with 10% interest. The principal will be due at the end of the term and the interest is payable annually every December 31. The effective interest rate of the bonds is 12%. Half of the bonds were retired on July 1, 2016 at 110. 5. What is the cash rocoivod by LINE Inc. on July 1, 2014 from the issuanco of bonds payable? 6. What is the intorost exponso for the year onded December 31, 2014? 7. What is the gain/(loss) on rotiromont of bonds payablo?

Problem No. 3 On July 1, 2014, LINE Inc. issued a 4-year, P1,000,000 bonds payable dated January 1, 2014, with 10% interest. The principal will be due at the end of the term and the interest is payable annually every December 31. The effective interest rate of the bonds is 12%. Half of the bonds were retired on July 1, 2016 at 110. 5. What is the cash rocoivod by LINE Inc. on July 1, 2014 from the issuanco of bonds payable? 6. What is the intorost exponso for the year onded December 31, 2014? 7. What is the gain/(loss) on rotiromont of bonds payablo?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 14MC: Whirlie Inc. issued $300,000 face value, 10% paid annually, 10-year bonds for $319,251 when the...

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