On July 1, 2019, Honda Company issued 5,000 of the P1,000 face value, 8% bonds for P4,615,000 to yield 10% market rate. The bonds, which mature on July 1, 2024, pay interest semi-annually on January 1 and July 1. Honda uses the effective interest method of amortization and the bonds are appropriately recorded as long-term liability. The bonds should be reported on the December 31, 2019 balance sheet at: a. P4,676,500 c. P4,645,750 b. P4,584,250 d. P4,653,500
On July 1, 2019, Honda Company issued 5,000 of the P1,000 face value, 8% bonds for P4,615,000 to yield 10% market rate. The bonds, which mature on July 1, 2024, pay interest semi-annually on January 1 and July 1. Honda uses the effective interest method of amortization and the bonds are appropriately recorded as long-term liability. The bonds should be reported on the December 31, 2019 balance sheet at: a. P4,676,500 c. P4,645,750 b. P4,584,250 d. P4,653,500
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
On July 1, 2019, Honda Company issued 5,000 of the P1,000 face
bonds, which mature on July 1, 2024, pay interest semi-annually on January 1 and July 1. Honda uses the effective interest method
of amortization and the bonds are appropriately recorded as long-term liability. The bonds should be reported on the December 31,
2019
a. P4,676,500 c. P4,645,750
b. P4,584,250 d. P4,653,500
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education