Elizabeta Corporation, a calendar year entity, issued bonds with the following terms: Face value of bonds P 5,000,000 Issue price 5,300,000 Date of bonds January 1, 2021 Date of issue January 1, 2021 Interest rate 12% Semi-annual interest dates June 30 and December 31 The bonds mature on every December 31 of each year at the rate of P1,000,000 for 5 years. Elizabeta uses the bond outstanding method in amortizing discounts, premiums and bond issue costs. The amount of interest expense to be recognized relating to the bonds in 2022 is: The carrying amount of the bonds as of December 31, 2023 is:
Elizabeta Corporation, a calendar year entity, issued bonds with the following terms: Face value of bonds P 5,000,000 Issue price 5,300,000 Date of bonds January 1, 2021 Date of issue January 1, 2021 Interest rate 12% Semi-annual interest dates June 30 and December 31 The bonds mature on every December 31 of each year at the rate of P1,000,000 for 5 years. Elizabeta uses the bond outstanding method in amortizing discounts, premiums and bond issue costs. The amount of interest expense to be recognized relating to the bonds in 2022 is: The carrying amount of the bonds as of December 31, 2023 is:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Elizabeta Corporation, a calendar year entity, issued bonds with the following terms:
Face value of bonds P 5,000,000
Issue price 5,300,000
Date of bonds January 1, 2021
Date of issue January 1, 2021
Interest rate 12%
Semi-annual interest dates June 30 and December 31
The bonds mature on every December 31 of each year at the rate of P1,000,000 for 5 years. Elizabeta uses the bond outstanding method in amortizing discounts, premiums and bond issue costs.
Issue price 5,300,000
Date of bonds January 1, 2021
Date of issue January 1, 2021
Interest rate 12%
Semi-annual interest dates June 30 and December 31
The bonds mature on every December 31 of each year at the rate of P1,000,000 for 5 years. Elizabeta uses the bond outstanding method in amortizing discounts, premiums and bond issue costs.
- The amount of interest expense to be recognized relating to the bonds in 2022 is:
- The carrying amount of the bonds as of December 31, 2023 is:
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