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On July 1, 2002, Roger Co. paid P1,198,00 10% 20-year bonds with a face amount of P1,000,000. Interest is paid on December June 30. The bonds were purchased to yie Roger uses the effective interest method t

On July 1, 2002, Roger Co. paid P1,198,00 10% 20-year bonds with a face amount of P1,000,000. Interest is paid on December June 30. The bonds were purchased to yie Roger uses the effective interest method t

FINANCIAL ACCOUNTING
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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On July 1, 2002, Roger Co. paid P1,198,000 for 10% 20-year bonds with a face amount of P1,000,000. Interest is paid on December 31 and June 30. The bonds were purchased to yield 8%. Roger uses the effective interest method to recognize interest income from investment. What should be reported as carrying amount of the bonds in Roger's December 31, 2002 balance sheet? P1,207,000 P1,198,000 P1,195,920 P1,103,050
Transcribed Image Text:On July 1, 2002, Roger Co. paid P1,198,000 for 10% 20-year bonds with a face amount of P1,000,000. Interest is paid on December 31 and June 30. The bonds were purchased to yield 8%. Roger uses the effective interest method to recognize interest income from investment. What should be reported as carrying amount of the bonds in Roger's December 31, 2002 balance sheet? P1,207,000 P1,198,000 P1,195,920 P1,103,050
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