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Interest expense for the year 2024 shall be a. P686,717 b. P802,862 c. P1,000,000 d P919007

Interest expense for the year 2024 shall be a. P686,717 b. P802,862 c. P1,000,000 d P919007

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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Subject: accounting 

5. On July 1, 2023, MAYA Company issued four-year, 10% interest-bearing bonds with total face amount of P10,000,000. The bonds are payable in four equal annual installments every June 30, starting on June 30, 2024. In addition, interest is also payable every June 30 of each year. Market rates on the date of issuance averaged 9%. Interest expense for the year 2024 shall be a. P686,717 b. P802,862 c. P1,000,000 d. P919,007 Carrying amount of the bonds as of December 31, 2025 shall be c. P5,044,922 d. P3,794,922 a. P5,066,911 b. P2,522,933
Transcribed Image Text:5. On July 1, 2023, MAYA Company issued four-year, 10% interest-bearing bonds with total face amount of P10,000,000. The bonds are payable in four equal annual installments every June 30, starting on June 30, 2024. In addition, interest is also payable every June 30 of each year. Market rates on the date of issuance averaged 9%. Interest expense for the year 2024 shall be a. P686,717 b. P802,862 c. P1,000,000 d. P919,007 Carrying amount of the bonds as of December 31, 2025 shall be c. P5,044,922 d. P3,794,922 a. P5,066,911 b. P2,522,933
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