On January 1, 2016, Pharaoh Company issued 3-year bonds with a face value of P1,200,000 and stated interest of 8% per year. The bonds mature in 3 equal annual installments every December 31. The interest is also payable every December 31. The bonds were acquired to yield 10%. The bonds were appropriately classified as financial liability at amortized cost. Compute for the carrying value on December 31, 2021. (Round off present value factors up to four decimal places, in presenting your final answer round-up to the nearest peso)
On January 1, 2016, Pharaoh Company issued 3-year bonds with a face value of P1,200,000 and stated interest of 8% per year. The bonds mature in 3 equal annual installments every December 31. The interest is also payable every December 31. The bonds were acquired to yield 10%. The bonds were appropriately classified as financial liability at amortized cost. Compute for the carrying value on December 31, 2021. (Round off present value factors up to four decimal places, in presenting your final answer round-up to the nearest peso)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 2016, Pharaoh Company issued 3-year bonds with a face value of P1,200,000 and stated interest of 8% per year. The bonds mature in 3 equal annual installments every December 31. The interest is also payable every December 31. The bonds were acquired to yield 10%. The bonds were appropriately classified as financial liability at amortized cost. Compute for the carrying value on December 31, 2021. (Round off present value factors up to four decimal places, in presenting your final answer round-up to the nearest peso)
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