On January 1, 20x1, ABC Co. issued its 8%, ₱2,000,000 bonds. Principal is due on December 31, 20x3 but interest is payable annually on December 31. The effective interest rate is 10%. At December 31, 20x1, how much is interest expense on bonds payable? PV of P1 at 8% for 3n = . 79383 PV of P1 at 10% for 3n = .75131 PV ordinary annuity at 8% for 3n = 2.57710 PV ordinary annuity at 10% for 3n = 2.48685 160,000 168,246 190,052 200,000

On January 1, 20x1, ABC Co. issued its 8%, ₱2,000,000 bonds. Principal is due on December 31, 20x3 but interest is payable annually on December 31. The effective interest rate is 10%. At December 31, 20x1, how much is interest expense on bonds payable? PV of P1 at 8% for 3n = . 79383 PV of P1 at 10% for 3n = .75131 PV ordinary annuity at 8% for 3n = 2.57710 PV ordinary annuity at 10% for 3n = 2.48685 160,000 168,246 190,052 200,000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 7MCQ

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