13. Use the same informationgiven in the precedingproblem. What is the bondcarrying value at December 31,2012? *a. P1,024,524b. P1,031,236c. P1,032,880O d. P1,041,236 12. On July 1, 2012, MadisonCompany received P1,032,880for P1,000,000 face amount,12% bonds, a price that yields10%.

Solution: Premium amortized on Dec 31, 2012 = Cash paid for interest - Interest expense =…

Answered: 12. On July 1, 2012, Madison Company…

Business

Accounting

12. On July 1, 2012, Madison Company received P1,032,880 for P1,000,000 face amount, 12% bonds, a price that yields 10%

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

13. Use the same information
given in the preceding
problem. What is the bond
carrying value at December 31,
2012? *
a. P1,024,524
b. P1,031,236
c. P1,032,880
O d. P1,041,236

12. On July 1, 2012, Madison
Company received P1,032,880
for P1,000,000 face amount,
12% bonds, a price that yields
10%.

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