On January 1, 2020, Marimar Company issued 10,000 of its 12%, P1,000 face value 5-year bonds at 105. Interest on the bonds is payable annually every December 31. In connection with the sale of these bonds, Marimar paid the following expenses: Promotion costs P100,000 Engraving and printing 400,000 Underwriter’s commissions 500,000 Using the straight line method, what amount should Marimar report as bond interest expense for the year 2020? Group of answer choices P1,300,000 P1,100,000 P1,600,000 P1,200,000

On January 1, 2020, Marimar Company issued 10,000 of its 12%, P1,000 face value 5-year bonds at 105. Interest on the bonds is payable annually every December 31. In connection with the sale of these bonds, Marimar paid the following expenses: Promotion costs P100,000 Engraving and printing 400,000 Underwriter’s commissions 500,000 Using the straight line method, what amount should Marimar report as bond interest expense for the year 2020? Group of answer choices P1,300,000 P1,100,000 P1,600,000 P1,200,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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