Alyssa Company issued P 10,000,000 bonds on January 1, 2021. The bonds pay interest annually at 10% on the outstanding bond balance The face value of the bonds is payable in installments of P 2.000,000 every December 31 starting December 31, 2021. The bonds were sold to yield 14%. How much cash was paid on December 31. 2022? Do not round off your present value factors but round off to two decimal places the final answer.

Alyssa Company issued P 10,000,000 bonds on January 1, 2021. The bonds pay interest annually at 10% on the outstanding bond balance The face value of the bonds is payable in installments of P 2.000,000 every December 31 starting December 31, 2021. The bonds were sold to yield 14%. How much cash was paid on December 31. 2022? Do not round off your present value factors but round off to two decimal places the final answer.

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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On January 1, 2021, Jackie Company issued 10,000 P5,000 10% four-year bonds at an effective interest rate of 12%. The interest is payable every July 1 and December 31. On June 30, 2023, 6,000 of the bonds were retired at 98. How much is the interest expense for 2021?How much is the discount amortization during 2022?How much is the net effect of the bonds on the 2023 Statement of Comprehensive Income? [Indicate whether it is a gain or loss]How much is the interest expense for 2024?
n January 1, 2021, MACADAMIA Company issued 5 year bonds with face value of ₱5,000,000 at 110. The company paid bond issued cost of ₱80,000 on same date. The stated interest rate on the bonds is 8% payable annually every December 31. After consideration of bond issue costs to be initially measured, the bonds were determined to yield 6% per annum. On December 31, 2021, what should MACADAMIA report as carrying amount of the bonds payable? * A ₱ 5,000,000 B ₱ 5,414,800 C ₱ 5,430,800 D ₱ 5,345,200
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Answer isn’t 1,000,000