On January 1, 2019, Marites Company issue its P10,000,000 face amount, 10% bonds to yield 8% per year. The bonds mature on January 1, 2024 and pay interest semiannually on June 30 and December 31. The relevant present value factors are as follows: Present value of 1 at 4% for 10 periods 0.6756 Present value for an ordinary annuity at 4% for 10 periods 8.11 Present value of 1 at 5% for 10 periods 0.6139 Present value of for an ordinary annuity at 5% for 10 periods 7.72 The carrying amount of this bond liability (round to the nearest thousand) on January 1, 2019 is Group of answer choices 10,811,000 9,753,000 10,721,000 11,148,000
On January 1, 2019, Marites Company issue its P10,000,000 face amount, 10% bonds to yield 8% per year. The bonds mature on January 1, 2024 and pay interest semiannually on June 30 and December 31. The relevant present value factors are as follows: Present value of 1 at 4% for 10 periods 0.6756 Present value for an ordinary annuity at 4% for 10 periods 8.11 Present value of 1 at 5% for 10 periods 0.6139 Present value of for an ordinary annuity at 5% for 10 periods 7.72 The carrying amount of this bond liability (round to the nearest thousand) on January 1, 2019 is Group of answer choices 10,811,000 9,753,000 10,721,000 11,148,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
On January 1, 2019, Marites Company issue its P10,000,000 face amount, 10% bonds to yield 8% per year. The bonds mature on January 1, 2024 and pay interest semiannually on June 30 and December 31. The relevant present value factors are as follows:
|
Present value of 1 at 4% for 10 periods |
0.6756 |
|
Present value for an ordinary annuity at 4% for 10 periods |
8.11 |
|
Present value of 1 at 5% for 10 periods |
0.6139 |
|
Present value of for an ordinary annuity at 5% for 10 periods |
7.72 |
The carrying amount of this bond liability (round to the nearest thousand) on January 1, 2019 is
Group of answer choices
10,811,000
9,753,000
10,721,000
11,148,000
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