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

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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