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
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff12500ca-1c3e-4b6e-bdd8-267dd9ec3f65%2F3673fc8d-1983-4bd9-8e7d-6d47bfb8fc9b%2Fgows33g_processed.jpeg&w=3840&q=75)
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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