Problem No. 4 On December 31, 2014, YEN Inc. issued a 3-year P4,500,000 serial bonds payable with 10% interest payable every December 31 starting in 2015. The P4,500,000 bonds is payable through equal annual instailment every December 31. The effective interest rate of the bonds is 8%. 8. What is the initial measurement of the bonds payable on December 31, 2014? 9. What is the interest expense for the year ended December 31, 2015? 10. What is the carrying value of bonds payable on December 31, 2016?
Problem No. 4 On December 31, 2014, YEN Inc. issued a 3-year P4,500,000 serial bonds payable with 10% interest payable every December 31 starting in 2015. The P4,500,000 bonds is payable through equal annual instailment every December 31. The effective interest rate of the bonds is 8%. 8. What is the initial measurement of the bonds payable on December 31, 2014? 9. What is the interest expense for the year ended December 31, 2015? 10. What is the carrying value of bonds payable on December 31, 2016?
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter10: Long-term Liabilities
Section: Chapter Questions
Problem 10.16MCE
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