On December 31, 2015, Ariana Grande Corporation issued 20-year, nonconvertible bonds of P5,000,000 for P5,851,160 to yield 10%. Interest is payable annually on December 31 at 12%. On April 1, 2017, Ariana Grande retires 2,000 of its own P1,000 bonds at 102 plus accrued interest. The accounting period of Ariana Grande Corporation is the calendar year. What is the amount of gain or loss on early retirement of bond that will be reported in 2017 income statement? Group of answer choices 232,873 gain 292,873 gain 292,873 loss 232,873 loss

On December 31, 2015, Ariana Grande Corporation issued 20-year, nonconvertible bonds of P5,000,000 for P5,851,160 to yield 10%. Interest is payable annually on December 31 at 12%. On April 1, 2017, Ariana Grande retires 2,000 of its own P1,000 bonds at 102 plus accrued interest. The accounting period of Ariana Grande Corporation is the calendar year. What is the amount of gain or loss on early retirement of bond that will be reported in 2017 income statement? Group of answer choices 232,873 gain 292,873 gain 292,873 loss 232,873 loss

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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