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On November 1, 20x4, VICO Corp. issued P800,000 of its 10-year, 8% term bonds dated October 1, 20x4. The bonds were sold to yield 10%, with total proceeds of P700,000 plus accrued interest. Interest is paid every April 1 and October 1. What amount should VICO report for interest payable in its December 31, 20x4, balance sheet.

On November 1, 20x4, VICO Corp. issued P800,000 of its 10-year, 8% term bonds dated October 1, 20x4. The bonds were sold to yield 10%, with total proceeds of P700,000 plus accrued interest. Interest is paid every April 1 and October 1. What amount should VICO report for interest payable in its December 31, 20x4, balance sheet.

FINANCIAL ACCOUNTING
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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On November 1, 20x4, VICO Corp. issued P800,000 of its 10-year, 8% term bonds dated October 1, 20x4. The bonds were sold to yield 10%, with total proceeds of P700,000 plus accrued interest. Interest is paid every April 1 and October 1. What amount should VICO report for interest payable in its December 31, 20x4, balance sheet.
Transcribed Image Text:On November 1, 20x4, VICO Corp. issued P800,000 of its 10-year, 8% term bonds dated October 1, 20x4. The bonds were sold to yield 10%, with total proceeds of P700,000 plus accrued interest. Interest is paid every April 1 and October 1. What amount should VICO report for interest payable in its December 31, 20x4, balance sheet.
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