On January 2, 2012, Halcon Company issued 9% bonds in the amount of P8,000,000 which mature on January 2, 2022 The bonds were issued for P7,512,000 to yield 10% resulting in a bond discount of P488,000. Interest is payable annually on December 31. Halcon uses the interest method of amortizing bond discount. In its December 31, 2012 balance sheet, what amount should Halcon report as bonds payable?

On January 2, 2012, Halcon Company issued 9% bonds in the amount of P8,000,000 which mature on January 2, 2022 The bonds were issued for P7,512,000 to yield 10% resulting in a bond discount of P488,000. Interest is payable annually on December 31. Halcon uses the interest method of amortizing bond discount. In its December 31, 2012 balance sheet, what amount should Halcon report as bonds payable?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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