4. At the beginning of 2020. Wallace Corporation issued 10% bonds with a face value of P900,000. These bonds mature in the five years, and interest is paid semi-annually on June 30 and December 31. The bonds were sold for P833,760 to yield 12%. Wallace uses a calendar-year reporting period. Using the effective – interest method of amortization, what amount of interest expense should be reported for 2020? (Round your answer in the nearest peso).

4. At the beginning of 2020. Wallace Corporation issued 10% bonds with a face value of P900,000. These bonds mature in the five years, and interest is paid semi-annually on June 30 and December 31. The bonds were sold for P833,760 to yield 12%. Wallace uses a calendar-year reporting period. Using the effective – interest method of amortization, what amount of interest expense should be reported for 2020? (Round your answer in the nearest peso).

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 8RE

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