On January 1, 2019, Langka Inc. issued 9% bonds in the face amount of P5,000,000 which mature on January 1, 2019. The bonds were issued for P4,695,000 to yield 10%. Interest is payable annually on December 31. The entity used the interest method of amortizing bond discount. What is the carrying amount of the bonds on January 1, 2019?
On January 1, 2019, Langka Inc. issued 9% bonds in the face amount of P5,000,000 which mature on January 1, 2019. The bonds were issued for P4,695,000 to yield 10%. Interest is payable annually on December 31. The entity used the interest method of amortizing bond discount. What is the carrying amount of the bonds on January 1, 2019?
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 9EA: On Jan. 1, Year 1, Foxcroft Inc. issued 100 bonds with a face value of $1,000 for $104,000. The...
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On January 1, 2019, Langka Inc. issued 9% bonds in the face amount of P5,000,000 which mature on January 1, 2019. The bonds were issued for P4,695,000 to yield 10%. Interest is payable annually on December 31. The entity used the interest method of amortizing bond discount.
What is the carrying amount of the bonds on January 1, 2019?
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