On November 1, 2020, Mason Company issued P4,000,000 of 10-year, 8% term bonds dated October 1, 2020. The bonds were sold to yield 10% with total proceeds of P3,500,000 plus accrued interest. Interest is paid every April 1 and October 1. What amount should be reported as accrued interest payable on December 31, 2020? a. 100,000 b. 80,000 с. 53,333 d. 87,500

On November 1, 2020, Mason Company issued P4,000,000 of 10-year, 8% term bonds dated October 1, 2020. The bonds were sold to yield 10% with total proceeds of P3,500,000 plus accrued interest. Interest is paid every April 1 and October 1. What amount should be reported as accrued interest payable on December 31, 2020? a. 100,000 b. 80,000 с. 53,333 d. 87,500

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 9RE

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