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
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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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