On March 1, 2021, JebaMac Company issued 7% term bonds with a face amount of P1,000,000 due March 1, 2025, Interest is payable semiannually on September 1 and March 1. On the date of issue, investors were willing to accept an effective interest of 6% Round off PV factors to 4 decimals. What is the initial carrying amount of the liability?

On March 1, 2021, JebaMac Company issued 7% term bonds with a face amount of P1,000,000 due March 1, 2025, Interest is payable semiannually on September 1 and March 1. On the date of issue, investors were willing to accept an effective interest of 6% Round off PV factors to 4 decimals. What is the initial carrying amount of the liability?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 4EA: On January 1, 2018, Wawatosa Inc. issued 5-year bonds with a face value of $200,000 and a stated...

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