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On January 1, 2002. Mar issued its 10% bonds in the face amount of P1,500,000. They mature on January 1, 2012. The bonds were issued for P1,329,000 to yield 12%, resulting in bond discount of P171,000. Mar uses the effective interest method of amortizing bond discount. Interest is payable July 1 and January 1. For the six months ended June 30, 2002, Mar should report bond interest of:

On January 1, 2002. Mar issued its 10% bonds in the face amount of P1,500,000. They mature on January 1, 2012. The bonds were issued for P1,329,000 to yield 12%, resulting in bond discount of P171,000. Mar uses the effective interest method of amortizing bond discount. Interest is payable July 1 and January 1. For the six months ended June 30, 2002, Mar should report bond interest of:

FINANCIAL ACCOUNTING
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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On January 1, 2002. Mar issued its 10% bonds in the face amount of P1,500,000. They mature on January 1, 2012. The bonds were issued for P1,329,000 to yield 12%, resulting in bond discount of P171,000. Mar uses the effective interest method of amortizing bond discount. Interest is payable July 1 and January 1. For the six months ended June 30, 2002, Mar should report bond interest of: P75,000 P79740 P83,550 P85,260
Transcribed Image Text:On January 1, 2002. Mar issued its 10% bonds in the face amount of P1,500,000. They mature on January 1, 2012. The bonds were issued for P1,329,000 to yield 12%, resulting in bond discount of P171,000. Mar uses the effective interest method of amortizing bond discount. Interest is payable July 1 and January 1. For the six months ended June 30, 2002, Mar should report bond interest of: P75,000 P79740 P83,550 P85,260
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