On December 31, 2020, Reyes Company issued P2,000,000, 12% serial bonds to be repaid in the amount of P500,000 each year. Interest is payable annually on December 31. The bonds were issued to yield 10% a year. The bonds proceeds were P2,083,000 based on the present values at December 31, 2020. Reyes company amortizes the bond discount by the interest method.   In its December 31, 2021 statement of financial position, what amount should Reyes Company report the carrying amount of the bonds? Group of answer choices 1,551,300 1,531,700 2,051,300 2,083,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
100%

On December 31, 2020, Reyes Company issued P2,000,000, 12% serial bonds to be repaid in the amount of P500,000 each year. Interest is payable annually on December 31. The bonds were issued to yield 10% a year. The bonds proceeds were P2,083,000 based on the present values at December 31, 2020. Reyes company amortizes the bond discount by the interest method.

 

In its December 31, 2021 statement of financial position, what amount should Reyes Company report the carrying amount of the bonds?

Group of answer choices
1,551,300
1,531,700
2,051,300
2,083,000
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education