On January 1, 2021, Ganda Company issued P5,000,000, 8% serial bonds payable to be repaid in the amount of P1,000,000 each year. Interest is payable annually on December 31. The bonds were issued to yield 10% a year. The bonds were issued for P4,757,000 based on the present value at January 1, 2021 of five annual payments. How much should be recognized as interest expense on December 31, 2021?
On January 1, 2021, Ganda Company issued P5,000,000, 8% serial bonds payable to be repaid in the amount of P1,000,000 each year. Interest is payable annually on December 31. The bonds were issued to yield 10% a year. The bonds were issued for P4,757,000 based on the present value at January 1, 2021 of five annual payments. How much should be recognized as interest expense on December 31, 2021?
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 7MC: On January 1 a company issues a $75,000 bond that pays interest semi-annually. The first interest...
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On January 1, 2021, Ganda Company issued P5,000,000, 8% serial bonds payable to be repaid in the amount of P1,000,000 each year. Interest is payable annually on December 31. The bonds were issued to yield 10% a year.
The bonds were issued for P4,757,000 based on the present value at January 1, 2021 of five annual payments. How much should be recognized as interest expense on December 31, 2021?
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