On January 1, 2021, Borg Company issued 4,000 of its 8% P2,000 face value bonds at 97 including accrued interest. The bonds are dated October 1, 2020 and mature on October 1, 2030. Interest is payable semi-annually on April 1 and October 1. Accrued interest for the period October 1, 2010 to January 1, 2021 amounted to P160,000. On January 1, 2021, what should be reported as the carrying amount of bonds payable?

On January 1, 2021, Borg Company issued 4,000 of its 8% P2,000 face value bonds at 97 including accrued interest. The bonds are dated October 1, 2020 and mature on October 1, 2030. Interest is payable semi-annually on April 1 and October 1. Accrued interest for the period October 1, 2010 to January 1, 2021 amounted to P160,000. On January 1, 2021, what should be reported as the carrying amount of bonds payable?

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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