On November 1, 2006, Naruto Company issued P8,000,000 of its 10-year, 8% term bonds dated October 1, 2006. The bonds were sold to yield 10% with total proceeds of P7,000,000 plus accrued interest. Interest is paid every April 1 and October 1. What should reported as interest payable in its December 31, 2006 balance sheet?
On November 1, 2006, Naruto Company issued P8,000,000 of its 10-year, 8% term bonds dated October 1, 2006. The bonds were sold to yield 10% with total proceeds of P7,000,000 plus accrued interest. Interest is paid every April 1 and October 1. What should reported as interest payable in its December 31, 2006 balance sheet?
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 13Q: A company issued bonds with a $100,000 face value, a 5-year term, a stated rate of 6%, and a market...
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On November 1, 2006, Naruto Company issued P8,000,000 of its 10-year, 8% term bonds dated October 1, 2006. The bonds were sold to yield 10% with total proceeds of P7,000,000 plus accrued interest. Interest is paid every April 1 and October 1. What should reported as interest payable in its December 31, 2006 balance sheet ?
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