On January 1, 2009, Delta Company issued its P10,000,000 face amount, 10% bonds to yield 8% per year. The bonds mature on January 1, 2014, that pays interest semiannually on June 30 and December 31. The relevant present value factors are as follows: Present value of 1 at 4% for 10 periods .6756 Present value for an ordinary annuity at 4% for 10 8.11 periods Present value of 1 at 5% for 10 periods .6139 Present value for an ordinary annuity at 5% for 10 7.72 periods What is the carrying amount of this bond liability (rounded to the nearest thousand) on January 1, 2009?
On January 1, 2009, Delta Company issued its P10,000,000 face amount, 10% bonds to yield 8% per year. The bonds mature on January 1, 2014, that pays interest semiannually on June 30 and December 31. The relevant present value factors are as follows: Present value of 1 at 4% for 10 periods .6756 Present value for an ordinary annuity at 4% for 10 8.11 periods Present value of 1 at 5% for 10 periods .6139 Present value for an ordinary annuity at 5% for 10 7.72 periods What is the carrying amount of this bond liability (rounded to the nearest thousand) on January 1, 2009?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
On January 1, 2009, Delta Company issued its P10,000,000 face amount, 10% bonds to yield 8% per year. The bonds mature on January 1, 2014, that pays interest semiannually on June 30 and December 31. The relevant present value factors are as follows:
Present value of 1 at 4% for 10 periods .6756
Present value for an ordinary annuity at 4% for 10 8.11 periods
Present value of 1 at 5% for 10 periods .6139
Present value for an ordinary annuity at 5% for 10 7.72 periods
What is the carrying amount of this bond liability (rounded to the nearest thousand) on January 1, 2009?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education