On January 1, 2020, Lolo Company issued its 9% P9,000,000 face value bonds, which matures on January 1, 2030 for P8,451,000 to yield an effective rate of 10%. Lolo Company uses straight-line method of amortization. Interest is payable annually on December 31. At December 31, 2020, what is the balance of the discount on bonds payable? a. P464,490 c. P531,900 b. P591,000 d. P472,800
On January 1, 2020, Lolo Company issued its 9% P9,000,000 face value bonds, which matures on January 1, 2030 for P8,451,000 to yield an effective rate of 10%. Lolo Company uses straight-line method of amortization. Interest is payable annually on December 31. At December 31, 2020, what is the balance of the discount on bonds payable? a. P464,490 c. P531,900 b. P591,000 d. P472,800
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 2020, Lolo Company issued its 9% P9,000,000 face
a. P464,490 c. P531,900
b. P591,000 d. P472,800
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