On January 1, 2020, Alaska Corporation purchased P1,000,000 10% bonds for P1,051,510 (including broker’s commission of P20,000).  Interest is payable annually every December 31.  The bonds mature on December 31, 2022.  The prevailing market rate for the bonds is 9% at December 31, 2020.   If the bonds are classified as FA@AC, the amount to be reported on the entity’s December 31, 2020 statement of financial position is Group of answer choices P1,025,330 P1,017,610 P1,034,340 P1,035,630

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A: PV annuity factor at 5% for 40 periods is 17.15909.PV factor at 5% for 40 periods is 0.14205.

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A:

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Q: On January 1, 2019, Cranky Company issued 100, 5% stated. rate $1,000 bonds dated January 1, 2019,…

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Q: at 95. T

A: The journal entries and bonds payable as,

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A: Calculate the present value of the principal amount as shown below:

Q: 000. Intere 1, 2026. Th nounts to P1: rued interest

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A:

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Q: On January 1, 2020, Alaska Corporation purchased P1,000,000 10% bonds for P1,051,510 (including…

A: Interest paid=Value of bonds×10%=P 1,000,000×10%=P 100,000

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