On January 1, 2020, Kansas, Inc. issued ₱100,000, 10%, 10-year bonds when the market rate of interest was 8%. Interest is payable on June 30 and December 31. The following information is available: Sales 300,000 Cost of sales 180,000 Gross income 120,000 Interest expense ? Depreciation expense 14,500 Other expenses 82,000 Net income ? 12/31/202 0 1/1/202 0 Accounts receivable 55,000 48,000 Inventory 87,000 93,000 Accounts payable 60,000 58,000 All purchases of inventory are on account. Other expenses are paid for in cash. Questions: (Round off present value factors to 4 decimal places) 1. What is the carrying value of the bonds on January 1, 2020? 2. How much was paid to bondholders for interest during 2020? 3. What is the carrying value of the bonds on December 31, 2020? 4. What is the interest expense for 2020?
On January 1, 2020, Kansas, Inc. issued ₱100,000, 10%, 10-year bonds when the market rate of interest was 8%. Interest is payable on June 30 and December 31. The following information is available:
Sales 300,000
Cost of sales 180,000
Gross income 120,000
Interest expense ?
Other expenses 82,000
Net income ?
12/31/202
0
1/1/202
0
Accounts receivable 55,000 48,000
Inventory 87,000 93,000
Accounts payable 60,000 58,000
All purchases of inventory are on account. Other expenses are paid for in cash.
Questions: (Round off present value factors to 4 decimal places)
1. What is the carrying
2. How much was paid to bondholders for interest during 2020?
3. What is the carrying value of the bonds on December 31, 2020?
4. What is the interest expense for 2020?
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