10) 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?
10) 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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![10) 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?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2a50c14d-2772-4b08-bf04-7f2c201c67f9%2F32738d2f-291e-4c75-a965-fa342d323b84%2Fmz59xgr_processed.png&w=3840&q=75)
Transcribed Image Text:10) 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?
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