On January 1, 2020, Trader Company issued its 8%, 4 year convertible debt instrument with a face amount of P6,000,000 for P5,900,000. Interest is payable every December 31 of each year. The debt instruments is convertible into 50,000 ordinary shares a par value of P100. When the debt instruments were issued, the prevailing market rate of interest for similar debt without conversion option is 10%. PV of 10% for ordinary annuity of P1 after 4 periods 3.169865 PV of 10% after 4 interest period .683013   What is the amount of interest expense for the year ended December 31, 2021?   A. P561,962 B. P570,158 C. P579,173 D. P589,091

Q: Marinara, Inc. issued a 3-year term 2,000 convertible bonds on January 1, 2021 at 110 with a face…

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Q: On January 1,2020, ABC Company issued P 10,000,000 convertible bonds with a stated rate of 12% at…

A: Step 1 is for understanding initial Entries and Understanding the flow if you want Direct Answer…

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A: Total discount on bonds  retired on June 1, 2020 = Total amount of bonds issued x % of bonds retired…

Q: Tano Company issues bonds with a par value of $180,000 on January 1, 2019. The bonds’ annual…

A: Bond is a financial instrument which are issued by large organization to raise the fund. It is…

Q: Req 1 Req 2 to 4 Prepare the journal entries to record their issuance by The Bradford Company on…

A: The journal entry can be defined as the very first step where a transaction is entered into books of…

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A: Treatment of Debenture issued on discount Concept for accounting of issuance of debentures

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A: As Given in the question Faith Company provided 5,000 convertible notes due on January 1, 2019. The…

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A: Solution: Chart Values are based on:           n=  10   i=  10%   Cash Flow Table Value *…

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A: Formula:

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A: Part 1:

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A: Bond valuation refers to a method which is used to compute the current value or present value (PV)…

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A: Step 1:Answer 1.Computation of the premium on bonds at issuance:Premium on bonds payable = Issue…