Sansa Company has outstanding 7% 10-year P5,000,000 face value bond. The bond was issued and dated on December 31, 2015. It was originally sold to yield 6% interest. Sansa uses the effective interest method to amortize the bond premium/discount. Interest is paid every June 30 and Dec 31. After updating its books today, the carrying amount of the bond is adjusted to 5,298,448.38. What date is it today?

Sansa Company has outstanding 7% 10-year P5,000,000 face value bond. The bond was issued and dated on December 31, 2015. It was originally sold to yield 6% interest. Sansa uses the effective interest method to amortize the bond premium/discount. Interest is paid every June 30 and Dec 31. After updating its books today, the carrying amount of the bond is adjusted to 5,298,448.38. What date is it today?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 15MCQ

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