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On July 1, 2019, Fewa Company issued P4,000,000 of 16% bonds to yield 14%. Interest is payable semi-annually on January 1 and July 1. The bonds mature in five years. Fewa Company uses the calendar year and the effective interest method of amortization. (Use 5 decimal places for PV factor). How much was the issue price of the bond? * O P3,719,051 O P4,000,000 O P4,280,949 O P4,274,651

On July 1, 2019, Fewa Company issued P4,000,000 of 16% bonds to yield 14%. Interest is payable semi-annually on January 1 and July 1. The bonds mature in five years. Fewa Company uses the calendar year and the effective interest method of amortization. (Use 5 decimal places for PV factor). How much was the issue price of the bond? * O P3,719,051 O P4,000,000 O P4,280,949 O P4,274,651

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, 2019, Fewa Company issued P4,000,000 of 16% bonds to yield 14%. Interest is payable semi-annually on January 1 and July 1. The bonds mature in five years. Fewa Company uses the calendar year and the effective interest method of amortization. (Use 5 decimal places for PV factor). How much was the issue price of the bond? * O P3,719,051 O P4,000,000 O P4,280,949 O P4,274,651
Transcribed Image Text:On July 1, 2019, Fewa Company issued P4,000,000 of 16% bonds to yield 14%. Interest is payable semi-annually on January 1 and July 1. The bonds mature in five years. Fewa Company uses the calendar year and the effective interest method of amortization. (Use 5 decimal places for PV factor). How much was the issue price of the bond? * O P3,719,051 O P4,000,000 O P4,280,949 O P4,274,651
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