On January 1, 2006, Naruto Company issued its 9% bonds in face amount of P4,000,000, which mature on January 1, 2016. The bonds were issued for P3,756,000 to yield 10%, resulting in bond discount of P244,000. Naruto uses the interest method of amortizing bond discount. Interest is payable annually on December 31. At December 31, 2006, Naruto’s unamortized bond discount should be
On January 1, 2006, Naruto Company issued its 9% bonds in face amount of P4,000,000, which mature on January 1, 2016. The bonds were issued for P3,756,000 to yield 10%, resulting in bond discount of P244,000. Naruto uses the interest method of amortizing bond discount. Interest is payable annually on December 31. At December 31, 2006, Naruto’s unamortized bond discount should be
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 2006, Naruto Company issued its 9% bonds in face amount of P4,000,000, which mature on January 1, 2016. The bonds were issued for P3,756,000 to yield 10%, resulting in bond discount of P244,000. Naruto uses the interest method of amortizing bond discount. Interest is payable annually on December 31. At December 31, 2006, Naruto’s unamortized bond discount should be
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