18. On July 01, 2019, SALUDORAW SA'YO SI MAGELLAN SABINI LOLA CO. receivedP1,032,880 for P1,000,000face amount, 12% bonds,price that yields 10%. Usingthe interest method ofamortization, how much is theinterest expense for the sixmonths ended December 31,2019? *а. Р61,973ОБ. Р60,000с. Р51,644O d. P50,000 19. Use the same information inMC 18. What is the bondcarrying value at December 31,2019? *O a. P1,024,524O b. P1,031,236O c. P1,032,880O d. P1,041,236

Solution 18: Interest expense for first six months = Issue price * 10% *6/12 = 1032880 *10%*6/12 =…

Answered: P1,032,880 for P1,000,000 face amount,…

P1,032,880 for P1,000,000 face amount, 12% bonds, a price that yields 10%. Using the interest method of amortization, how much is the interest expense for the six

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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Question

18. On July 01, 2019, SALUDO
RAW SA'YO SI MAGELLAN SABI
NI LOLA CO. received
P1,032,880 for P1,000,000
face amount, 12% bonds,
price that yields 10%. Using
the interest method of
amortization, how much is the
interest expense for the six
months ended December 31,
2019? *
а. Р61,973
ОБ. Р60,000
с. Р51,644
O d. P50,000

19. Use the same information in
MC 18. What is the bond
carrying value at December 31,
2019? *
O a. P1,024,524
O b. P1,031,236
O c. P1,032,880
O d. P1,041,236

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