Submarine Company issued P1,000,000 par value, 12% bonds on January 2, 2020. The bonds mature in 10 years and pay interest semi-annually. The bonds were issued for P893,640 which yield an effective interest rate of 14%. What is the carrying amount of the bonds payable at December 31, 2020? A. 898,750 B. 904,276 C. 893,640 D. 898,929

Submarine Company issued P1,000,000 par value, 12% bonds on January 2, 2020. The bonds mature in 10 years and pay interest semi-annually. The bonds were issued for P893,640 which yield an effective interest rate of 14%. What is the carrying amount of the bonds payable at December 31, 2020? A. 898,750 B. 904,276 C. 893,640 D. 898,929

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 2PB: Charleston Inc. issued $200,000 bonds with a stated rate of 10%. The bonds had a 10-year maturity...

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