(1) FacebookA New tabE Intermediate Accounting 2.pdfO FileC:/Users/Admin/Desktop/2nd%20Year%20-%201st%20Sem/Intermediate%20Accounting%202.pdf...O Page viewA Read aloudV Draw- HighlightO Erase34of 382. Downing Company issues P5,000,000, 6%, 5-year bonds dated January 1, 2021. Thebonds pay interest semi-annually on June 30 and December 31. The bonds are issued toyield5%. What are the proceeds from the bond issue?2.5%3.0%P 5.0%6.0%Present value of a single sum for 588385periods86261.78353.74726.7812031Present value of a single sum for 10periods4.6458374409.6139155839Present value of annuity for 5 periodsPresent value of annuity for 10 8.752064.579714.329484.21236periods8.530207.721737.36009O Type here to search6:15 pm11/09/202183.8%29°CG 1) O ENG

Interest=Issue price×6%×612=P 5,000,000×6%×612=P 150,000

Answered: 2. Downing Company issues P5,000,000,…

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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26. Bonds Issued at a Premium (Effective Interest) Charger Battery issued $100,000 of 11%, seven-year bonds on December 31, 2022, for $104,868. Interest is paid annually on December 31. The market rate of interest is 10%. Required: Prepare the amortization table using the effective interest rate method. For those boxes in which no entry is required, leave the box blank. If the amount is zero, enter "0". If required, round your answers to the nearest whole dollar.
Complex Solution Company issues P2 M face value, 9%, 10-year bonds payable on December 31, 2023. Interest is paid semi-annually each June 30 and December 31. The bonds were sold at a price of 98. Complex uses the straight-line method of amortizing bond discounts and premium. **Compute for Amount of Bond Premium or Discount on December 31, 2023. **Bond Interest Expense for 2024 with respect to these bonds **Carrying Value of the bonds as of December 31, 2024.
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Hh1.
H1.
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S6. Account

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