On January 1, 2019, Shrimp Company issued its 9% P9,000,000 face value bonds, which matures on January 1, 2029 for P8,451,000 to yield an effective rate of 10%. Shrimp Company uses the effective interest method. Interest is payable annually on December 31. At December 31, 2019, what is the balance of the discount on bonds payable? a. P464,490 c. P513,900 b. P468,000 d. P459,000
On January 1, 2019, Shrimp Company issued its 9% P9,000,000 face value bonds, which matures on January 1, 2029 for P8,451,000 to yield an effective rate of 10%. Shrimp Company uses the effective interest method. Interest is payable annually on December 31. At December 31, 2019, what is the balance of the discount on bonds payable? a. P464,490 c. P513,900 b. P468,000 d. P459,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
On January 1, 2019, Shrimp Company issued its 9% P9,000,000 face
to yield an effective rate of 10%. Shrimp Company uses the effective interest method. Interest is payable annually on December
31. At December 31, 2019, what is the balance of the discount on bonds payable?
a. P464,490 c. P513,900
b. P468,000 d. P459,000
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