On January 1, 2006, Naruto Company issued 5,000 of its 9%, P1,000 face value bonds at 95. Interest is payable semiannually on July 1 and January 1. The bonds mature on January 1, 2016. Naruto uses the straight line method of amortizing bond discount. On Naruto’s December 31, 2006 balance sheet, how much would be shown as the carrying amount of the bonds payable?

On January 1, 2006, Naruto Company issued 5,000 of its 9%, P1,000 face value bonds at 95. Interest is payable semiannually on July 1 and January 1. The bonds mature on January 1, 2016. Naruto uses the straight line method of amortizing bond discount. On Naruto’s December 31, 2006 balance sheet, how much would be shown as the carrying amount of the bonds payable?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 4EA: On January 1, 2018, Wawatosa Inc. issued 5-year bonds with a face value of $200,000 and a stated...

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