On April 1, year 1, Opera Corporation issues P60 million of 12%, 10-year bonds payable at par. Interest on the bonds is payable semiannually each April 1 and October 1. 2) Interest expense on this bond issue reported in Opera Year 1, income statement is: a) 2,400,000

On April 1, year 1, Opera Corporation issues P60 million of 12%, 10-year bonds payable at par. Interest on the bonds is payable semiannually each April 1 and October 1. 2) Interest expense on this bond issue reported in Opera Year 1, income statement is: a) 2,400,000

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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Question

Answer it quickly with in 30 minutes

On April 1, year 1, Opera Corporation issues P60 million of 12%, 10-year bonds payable at par.
Interest on the bonds is payable semiannually each April 1 and October 1.
2) Interest expense on this bond issue reported in Opera Year 1, income statement is:
a) 2,400,000
b) 4,800,000
c) 5,400,000
d) 7,200,000

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