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On January 1, 2014, Alaska Corporation purchased P1,000,000 10% bonds for P1,051,510 (including broker’scommission of P20,000). Interest is payable annually every December 31. The bonds mature on December 31, 2016.The prevailing market rate for the bonds is 9% at December 31, 2014. If the bonds are classified as FA@AC the amount to be reported on the entity's December 31, 2014 statement of financial position is   a) 1,034,340 b) 1,017,610 c) 1,035,630 d) 1,025,330

On January 1, 2014, Alaska Corporation purchased P1,000,000 10% bonds for P1,051,510 (including broker’scommission of P20,000). Interest is payable annually every December 31. The bonds mature on December 31, 2016.The prevailing market rate for the bonds is 9% at December 31, 2014. If the bonds are classified as FA@AC the amount to be reported on the entity's December 31, 2014 statement of financial position is   a) 1,034,340 b) 1,017,610 c) 1,035,630 d) 1,025,330

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, 2014, Alaska Corporation purchased P1,000,000 10% bonds for P1,051,510 (including broker’scommission of P20,000). Interest is payable annually every December 31. The bonds mature on December 31, 2016.The prevailing market rate for the bonds is 9% at December 31, 2014.

If the bonds are classified as FA@AC the amount to be reported on the entity's December 31, 2014 statement of financial position is

 

a) 1,034,340

b) 1,017,610

c) 1,035,630

d) 1,025,330

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