On April 1, 2XX6, a company bought a 10-year, 8% P 400,000 bonds for P 350,000, a price which will yield a 10% effective rate/year. The bonds, which mature on April 1, 2X16, pay interest semiannually on April 1 and October 1. On October 1, 2XX6 and using the effective interest method, bond discount amortization of P 1,500 was recorded in addition to revenue of O P 17,500 OP 14,500 OP 16,000 O P 14,000
On April 1, 2XX6, a company bought a 10-year, 8% P 400,000 bonds for P 350,000, a price which will yield a 10% effective rate/year. The bonds, which mature on April 1, 2X16, pay interest semiannually on April 1 and October 1. On October 1, 2XX6 and using the effective interest method, bond discount amortization of P 1,500 was recorded in addition to revenue of O P 17,500 OP 14,500 OP 16,000 O P 14,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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