On January 1, 2021, LACEA COMPANY issued 7% term bonds with a face amount of P1,000,000 due January 1, 2029. Interest is payable semiannually on January 1 and July 1. On the date of issue, investors were willing to accept an effective interest of 6%. 1. Assume the bonds were issued on January 1, 2021, for P1,062,809. Using the effective interest amortization method, LACEA COMPANY recorded interest expense for the 6 months ended June 30, 2021, in the amount of ______ 2. Assume the bonds were issued on January 1, 2021, for P1,062,809. Using the effective interest amortization method, LACEA COMPANY recorded interest expense for the 6 months ended December 31, 2021, in the amount of ______ 3. The carrying value of the bonds on July 1, 2022 is:
On January 1, 2021, LACEA COMPANY issued 7% term bonds with a face amount of P1,000,000 due January 1, 2029. Interest is payable semiannually on January 1 and July 1. On the date of issue, investors were willing to accept an effective interest of 6%.
1. Assume the bonds were issued on January 1, 2021, for P1,062,809. Using the effective interest amortization method, LACEA COMPANY recorded interest expense for the 6 months ended June 30, 2021, in the amount of ______
2. Assume the bonds were issued on January 1, 2021, for P1,062,809. Using the effective interest amortization method, LACEA COMPANY recorded interest expense for the 6 months ended December 31, 2021, in the amount of ______
3. The carrying
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