1.) On Janaury 31, 2016, Large Corp. issued P 3,000,000 maturity value 12% bonds for P 3,000,000 cash. The bonds are dated Dec. 31, 2015 and mature on Dec. 31, 2025. Interest is payable semiannually on June 30 and Dec. 31. What amount of accrued interest payable should be reported on Sept. 30, 2016?
1.) On Janaury 31, 2016, Large Corp. issued P 3,000,000 maturity value 12% bonds for P 3,000,000 cash. The bonds are dated Dec. 31, 2015 and mature on Dec. 31, 2025. Interest is payable semiannually on June 30 and Dec. 31. What amount of accrued interest payable should be reported on Sept. 30, 2016?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1.) On Janaury 31, 2016, Large Corp. issued P 3,000,000 maturity
2.) On January 1, 2016, Truffle Corp. issued 9% bonds in the face amount of P 5,000,000, which maature on Janaury 1, 2016. The bonds were issued for P 4,695,000 to yield 10%. Interest is payable annually on Dec. 31. The entity used the interest method of amortizing bond discount. What is the amortization discount for 2016?
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