P-4***On July 1,2011, SUNSHINE Company issued P2,000,000, 10% bonds, which mature in five years. The bonds were sold on July 1,2011 for P1,852,810 a price to yield 12%. Interest is paid semiannually on July 1 and December31. 7. Calculate the following Year-end 12/31/2011 Year-end 12/31/2012 Amortization of discount Interestexpense Carrying amount of bonds
P-4***On July 1,2011, SUNSHINE Company issued P2,000,000, 10% bonds, which mature in five years. The bonds were sold on July 1,2011 for P1,852,810 a price to yield 12%. Interest is paid semiannually on July 1 and December31. 7. Calculate the following Year-end 12/31/2011 Year-end 12/31/2012 Amortization of discount Interestexpense Carrying amount of bonds
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![P-4***On July 1,2011, SUNSHINE Company issued P2,000,000, 10% bonds, which mature in five years.
The bonds were sold on July 1,2011 for P1,852,810 a price to yield 12%. Interest is paid semiannually on
July 1 and December 31.
7. Calculate the following:
Year-end 12/31/2011
Year-end 12/31/2012
Amortization of discount
Interestexpense
Carrying amount of bonds](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcc9c73d7-ac95-462c-bd2b-b3a11a90f52c%2Fc0152abf-5816-4726-9609-c777f865a8b7%2Fnh960u7_processed.png&w=3840&q=75)
Transcribed Image Text:P-4***On July 1,2011, SUNSHINE Company issued P2,000,000, 10% bonds, which mature in five years.
The bonds were sold on July 1,2011 for P1,852,810 a price to yield 12%. Interest is paid semiannually on
July 1 and December 31.
7. Calculate the following:
Year-end 12/31/2011
Year-end 12/31/2012
Amortization of discount
Interestexpense
Carrying amount of bonds
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