14. On January 1, 2012, London Company issued its 9% bonds in the face amount of P2.0 million which mature on January 1,2022. The bonds were issued for P1,878,000 to yield 10% resulting in a bond discount of P122,000. London Company uses the interest method of amortizing bond discount. Interest is payable annually on December 31. What is the carrying value of the bonds at December 31, 2012? * a. P1,885,800 O b. P1,896,000 O c. P1,896,780

14. On January 1, 2012, London Company issued its 9% bonds in the face amount of P2.0 million which mature on January 1,2022. The bonds were issued for P1,878,000 to yield 10% resulting in a bond discount of P122,000. London Company uses the interest method of amortizing bond discount. Interest is payable annually on December 31. What is the carrying value of the bonds at December 31, 2012? * a. P1,885,800 O b. P1,896,000 O c. P1,896,780

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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