Problem 4: DONNER Company issued 3-year, 12% bonds with face amount of ₱4,000,000. Interest is payable semi- annually on April 1 and October 1. The bonds were issued on April 1, 2021 for ₱4,203,028 which represents an effective interest cost of 10% per year.( Requirements: Prepare an ammortization table using the effective interest method Prepare journal entries for 2021 Compute or provide the answers for the following: How much is the interest paid for the year ended, December31, 2021? How much is the interest expense for the year ended, December 31,2021? What is the carrying amount of the bonds on December31,2021?
Problem 4: DONNER Company issued 3-year, 12% bonds with face amount of ₱4,000,000. Interest is payable semi- annually on April 1 and October 1. The bonds were issued on April 1, 2021 for ₱4,203,028 which represents an effective interest cost of 10% per year.( Requirements: Prepare an ammortization table using the effective interest method Prepare journal entries for 2021 Compute or provide the answers for the following: How much is the interest paid for the year ended, December31, 2021? How much is the interest expense for the year ended, December 31,2021? What is the carrying amount of the bonds on December31,2021?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Problem 4:
DONNER Company issued 3-year, 12% bonds with face amount of ₱4,000,000. Interest is payable semi- annually on April 1 and October 1. The bonds were issued on April 1, 2021 for ₱4,203,028 which represents an effective interest cost of 10% per year.(
Requirements:
- Prepare an ammortization table using the effective interest method
- Prepare
journal entries for 2021 - Compute or provide the answers for the following:
- How much is the interest paid for the year ended, December31, 2021?
- How much is the interest expense for the year ended, December 31,2021?
- What is the carrying amount of the bonds on December31,2021?
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