On January 1, 20x1, SPITEFUL MALICIOUS Co. issued 1,000, P4,000, 10%, 3-year bonds for P3,807,852. Principal is due on December 31, 20x3 but interests are due annually every year-end. The effective interest rate is 12%. SPITEFUL CO. incorrecty used the straight line method instead of the effective interest method to amortize the discount . What is the efect of the error on the carying amount of the bonds on December 31, 2012? (over) understated
On January 1, 20x1, Hipolito issued 1,000, P4,000, 10%, 3-year bonds for P3,807,852. Principal is due on December 31, 20x3 but interests are due annually every year-end. The effective interest rate is 12%. SPITEFUL CO. incorrecty used the
What is the efect of the error on the carying amount of the bonds on December 31, 2012? (over) understated
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