Compute for the net increase or decrease in the carrying amount of the bonds from June 30,2022 to June 30,2023. Determine the net increase or decrease in the carrying amount of the bonds from January 1,2022 to December 31,2023.

Compute for the net increase or decrease in the carrying amount of the bonds from June 30,2022 to June 30,2023. Determine the net increase or decrease in the carrying amount of the bonds from January 1,2022 to December 31,2023.

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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Question

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Problem 2.
On January 1, 2022, Jose Company sold 12% bonds with a face value of P500,000. The bonds
mature in 5 years and interest is paid semi-annually on June 30 and December 31. The bonds were
sold for P538,600 to yield 10%.
Required:
4. Compute for the net increase or decrease in the carrying amount of the bonds from June
30,2022 to June 30,2023.
5. Determine the net increase or decrease in the carrying amount of the bonds from January
1,2022 to December 31,2023.
Can you show the solutions? The answers are:
4. 6,608.17 Decrease
5. 13,232.08 Decrease

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