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Bond that does not coincide with the reporting period On April 1, 2023, ACT Company issued a 3-year, P3,000,000 face value bonds with a stated rate of 10% for P 2,852,480.27 The effective interest rate for similar bonds is 12%. Interest on the bonds is payable semi- annually on September 30 and March 31. ACT Company uses the calendar year as its reporting period. Date 4/1/2023 9/30/2023 3/31/2024 9/30/2024 3/31/2025 9/30/2025 3/31/2026 Nominal Interest Effective Interest Amortization 150,000.00 150,000.00 150,000.00 150,000.00 150,000.00 150,000.00 171,148.82 172,417.75 173,762.81 175,188.58 176,699.89 178,301.89 21,148.82 22,417.75 23,762.81 25,188.58 26,699.89 28,301.89 Carrrying Amount 2,852,480.27 2,873,629.09 2,896,046.83 2,919,809.64 2,944,998.22 2,971,698.11 3,000,000.00

Bond that does not coincide with the reporting period On April 1, 2023, ACT Company issued a 3-year, P3,000,000 face value bonds with a stated rate of 10% for P 2,852,480.27 The effective interest rate for similar bonds is 12%. Interest on the bonds is payable semi- annually on September 30 and March 31. ACT Company uses the calendar year as its reporting period. Date 4/1/2023 9/30/2023 3/31/2024 9/30/2024 3/31/2025 9/30/2025 3/31/2026 Nominal Interest Effective Interest Amortization 150,000.00 150,000.00 150,000.00 150,000.00 150,000.00 150,000.00 171,148.82 172,417.75 173,762.81 175,188.58 176,699.89 178,301.89 21,148.82 22,417.75 23,762.81 25,188.58 26,699.89 28,301.89 Carrrying Amount 2,852,480.27 2,873,629.09 2,896,046.83 2,919,809.64 2,944,998.22 2,971,698.11 3,000,000.00

FINANCIAL ACCOUNTING
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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Please show the solutions from current/non-current liability to balances of carrying of bonds payable. 

Current/Non-current Liability Current Non-current 2023 75,000.00 Balances as at: Interest Expense Discount on Bonds Payable Carrying of Bonds Payable 2024 75,000.00 3,007,403.93 2,884,837.96 2025 12/31/2023 12/31/2024 257,357.69 347,565.97 115,162.04 67,596.07 2,884,837.96 2,932,403.93 2026 12/31/2025 12/31/2026 353,445.13 14,150.94 2,985,849.06
Transcribed Image Text:Current/Non-current Liability Current Non-current 2023 75,000.00 Balances as at: Interest Expense Discount on Bonds Payable Carrying of Bonds Payable 2024 75,000.00 3,007,403.93 2,884,837.96 2025 12/31/2023 12/31/2024 257,357.69 347,565.97 115,162.04 67,596.07 2,884,837.96 2,932,403.93 2026 12/31/2025 12/31/2026 353,445.13 14,150.94 2,985,849.06
Bond that does not coincide with the reporting period On April 1, 2023, ACT Company issued a 3-year, P3,000,000 face value bonds with a stated rate of 10% for P 2,852,480.27 The effective interest rate for similar bonds is 12%. Interest on the bonds is payable semi- annually on September 30 and March 31. ACT Company uses the calendar year as its reporting period. Date 4/1/2023 9/30/2023 3/31/2024 9/30/2024 3/31/2025 9/30/2025 3/31/2026 Nominal Interest Effective Interest 150,000.00 150,000.00 150,000.00 150,000.00 150,000.00 150,000.00 171,148.82 172,417.75 173,762.81 175,188.58 176,699.89 178,301.89 Amortization 21,148.82 22,417.75 23,762.81 25,188.58 26,699.89 28,301.89 Carrrying Amount 2,852,480.27 2,873,629.09 2,896,046.83 2,919,809.64 2,944,998.22 2,971,698.11 3,000,000.00
Transcribed Image Text:Bond that does not coincide with the reporting period On April 1, 2023, ACT Company issued a 3-year, P3,000,000 face value bonds with a stated rate of 10% for P 2,852,480.27 The effective interest rate for similar bonds is 12%. Interest on the bonds is payable semi- annually on September 30 and March 31. ACT Company uses the calendar year as its reporting period. Date 4/1/2023 9/30/2023 3/31/2024 9/30/2024 3/31/2025 9/30/2025 3/31/2026 Nominal Interest Effective Interest 150,000.00 150,000.00 150,000.00 150,000.00 150,000.00 150,000.00 171,148.82 172,417.75 173,762.81 175,188.58 176,699.89 178,301.89 Amortization 21,148.82 22,417.75 23,762.81 25,188.58 26,699.89 28,301.89 Carrrying Amount 2,852,480.27 2,873,629.09 2,896,046.83 2,919,809.64 2,944,998.22 2,971,698.11 3,000,000.00
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