On Janaury 1, 2021, Eastern Corp. received P 1,077,200 for P 1,000,000 face amount 12% bonds. The bonds were sold to yield 10%. Interest is payable semiannually every January 1 and July 1. The entity has elected the fair value option for measuring the financial liability. On Dec. 31, 2021, the fair value of the bonds is determined to be P 1,064,600 due to market and interest factors. What is the carrying amount of the bonds payable on January 1, 2021? What is the carrying amount of the bonds payable on December 31, 2021?
On Janaury 1, 2021, Eastern Corp. received P 1,077,200 for P 1,000,000 face amount 12% bonds. The bonds were sold to yield 10%. Interest is payable semiannually every January 1 and July 1. The entity has elected the fair value option for measuring the financial liability. On Dec. 31, 2021, the fair value of the bonds is determined to be P 1,064,600 due to market and interest factors. What is the carrying amount of the bonds payable on January 1, 2021? What is the carrying amount of the bonds payable on December 31, 2021?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On Janaury 1, 2021, Eastern Corp. received P 1,077,200 for P 1,000,000 face amount 12% bonds. The bonds were sold to yield 10%. Interest is payable semiannually every January 1 and July 1. The entity has elected the fair value option for measuring the financial liability. On Dec. 31, 2021, the fair
What is the carrying amount of the bonds payable on January 1, 2021?
What is the carrying amount of the bonds payable on December 31, 2021?
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