On September 31, 2021, an entity issues bonds with face amount of P8,000,000 forP9,105, 022 including accrued interest. The bonds are dated January 1, 2021 and payannual interest of 11% every December 31. The effective interest rate is 9%.Requirement:a. Compute for the initial carrying amount of the bonds.b. Provide the entry on September 1, 2021 to record the issuance of the bonds.c. Compute for the interest expense in 2021. 3. On September 31, 2021, an entity issues bonds with face amount of P8,000,000 forP9,105, 022 including accrued interest. The bonds are dated January 1, 2021 and payannual interest of 11% every December 31. The effective interest rate is 9%.Requirement:a. Compute for the initial carrying amount of the bonds.b. Provide the entry on September 1, 2021 to record the issuance of the bonds.c. Compute for the interest expense in 2021.

Cash proceeds P9,105,022 Accrued Interest (P8,000,000 *9 /12 * 9%) (P540,000) Face Value of…

Business

Accounting

On September 31, 2021, an entity issues bonds with face amount of P8,000,000 for P9,105, 022 including accrued interest. The bonds are dated January 1, 2021 and pay annual interest of 11% every December 31. The effective interest rate is 9%.

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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