n December 1,2018, the Emerald Corporation issued five-year, non-convertible P 5,000,000 face value 12% bonds for P 5,386,072, a price that yields 10%. Interest is payable semi- annually on June 1 and December 1. On August 1,2021, the Emerald Corporation retired P 3,000,000 of the bonds at 105 plus accrued interest. The accounting period for the Emerald Corporation is the calendar year. REQUIRED: (a) Carrying value of the bonds on December 31,2019 (b) Interest expense for the year ended December 31, 2019 (c) Carrying value of the bonds retired on August 1, 2021
On December 1,2018, the Emerald Corporation issued five-year, non-convertible P 5,000,000 face
bonds for P 5,386,072, a price that yields 10%. Interest is payable semi- annually on June 1 and December 1.
On August 1,2021, the Emerald Corporation retired P 3,000,000 of the bonds at 105 plus accrued interest. The
accounting period for the Emerald Corporation is the calendar year.
REQUIRED:
(a) Carrying value of the bonds on December 31,2019
(b) Interest expense for the year ended December 31, 2019
(c) Carrying value of the bonds retired on August 1, 2021
(d) Gain or loss on redemption of the bonds on August 1,2021
(e) Carrying value of the bonds on December 31,2021
(f) Interest expense for the years ended December 31, 2021 and 2022
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