On January 1, 2018, Kimber Company issued 9% bonds in face amount of P8,000,000, which mature on January 1, 2028. The bonds were issued for P7,512,000 to yield 10%. The entity used the interest method of amortizing bond discount. Interest is payable annually on December 31.   On December 31, 2018, what is the carrying amount of bonds payable? Group of answer choices

FINANCIAL ACCOUNTING
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ISBN:9781259964947
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Chapter1: Financial Statements And Business Decisions
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12. On January 1, 2018, Kimber Company issued 9% bonds in face amount of P8,000,000, which mature on January 1, 2028. The bonds were issued for P7,512,000 to yield 10%. The entity used the interest method of amortizing bond discount. Interest is payable annually on December 31.

 

On December 31, 2018, what is the carrying amount of bonds payable?

Group of answer choices
7,543,000
7,592,000
7,584,000
7,587,120
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