On January 1, 2021, Relay Company issued a 3-year, 12% bonds with face value of P3,000,000. Interest is payable annually every December 31 of each year starting December 31, 2021. The effective rate of interest on January 1, 2021 is 18%. PV of P1 @ 18% for 3 per................... 0.6086 PV of an ordinary annuity of P1@ 18% for 3 periods... 2.1743 At what amount shall the bonds be initially recognized of January 1, 2021? O P2,044,896 O P3,000,000 O P2,483,088 O P2,608,548
On January 1, 2021, Relay Company issued a 3-year, 12% bonds with face value of P3,000,000. Interest is payable annually every December 31 of each year starting December 31, 2021. The effective rate of interest on January 1, 2021 is 18%. PV of P1 @ 18% for 3 per................... 0.6086 PV of an ordinary annuity of P1@ 18% for 3 periods... 2.1743 At what amount shall the bonds be initially recognized of January 1, 2021? O P2,044,896 O P3,000,000 O P2,483,088 O P2,608,548
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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