On January 1, 2023, Wei Ling Company purchased bonds with face amount of P6250.000 for PS,950,000 including transaction cost of P200,000. The bonds mature on December 31. 2025 and pay 10% interest annually on December 31 with a 12% effective yield. The bonds are quoted at 102 on December 31, 2023 and 105 on December 31. 2024. How much is the Interest income for the year 2023? O P714.000 O P610.000 O P72480 O PA25.000
On January 1, 2023, Wei Ling Company purchased bonds with face amount of P6250.000 for PS,950,000 including transaction cost of P200,000. The bonds mature on December 31. 2025 and pay 10% interest annually on December 31 with a 12% effective yield. The bonds are quoted at 102 on December 31, 2023 and 105 on December 31. 2024. How much is the Interest income for the year 2023? O P714.000 O P610.000 O P72480 O PA25.000
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 13Q: A company issued bonds with a $100,000 face value, a 5-year term, a stated rate of 6%, and a market...
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![On January 1, 2023, Wei Ling Company purchased bonds with face amount of P6.250.000 for
PS,950.000 including transaction cost of P200,000.
The bonds mature on December 31, 2025 and pay 10% interest annually on December 31 with a
12% effective yield.
The bonds are quoted at 102 on December 31, 2023 and 105 on December 31, 2024.
How much is the interest income for the year 2023?
O P714.000
O P610.000
O P724.680
O PA25.000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff6dc3454-7555-4830-89f5-d40f6d68421a%2Fc0aed663-28d8-487e-a7f6-51b8a3a79daf%2Ftyzj49_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On January 1, 2023, Wei Ling Company purchased bonds with face amount of P6.250.000 for
PS,950.000 including transaction cost of P200,000.
The bonds mature on December 31, 2025 and pay 10% interest annually on December 31 with a
12% effective yield.
The bonds are quoted at 102 on December 31, 2023 and 105 on December 31, 2024.
How much is the interest income for the year 2023?
O P714.000
O P610.000
O P724.680
O PA25.000
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