On January 1, 2019, ABC Company issued 7% term bonds with a face amount of P1,000,000 due January 1, 2027. Interest is payable semiannually on January 1 and July 1. On the date of issue, investors were willing to accept an effective interest of 6%. The interest expense for the year 2019 is? (Round off present value factor to 4-decimal place and round off final answer to whole number)

On January 1, 2019, ABC Company issued 7% term bonds with a face amount of P1,000,000 due January 1, 2027. Interest is payable semiannually on January 1 and July 1. On the date of issue, investors were willing to accept an effective interest of 6%. The interest expense for the year 2019 is? (Round off present value factor to 4-decimal place and round off final answer to whole number)

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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Question info is in the image