Problem 5-10 (AICPA Adapted) Hancock Company reported the following noncurrent liabilities on December 31, 2020: Unsecured 9% registered bond, P250,000 maturing annually beginning in 2021 11% convertible bonds, callable beginning in 2021, due 2022 2,750,000 1,250,000 Secured 12% guaranty security bonds, due 2022 10% commodity backed bonds, P500,000 maturing annually beginning in 2021 2,500,000 2,000,000 1. What total amount of serial bonds should be reported? a. 4,750,000 b. 3,750,000 c. 4,500,000 d. 2,000,000 2. What is the total amount of debenture bonds? a. 4,000,000 b. 1,250,000 c. 6,500,000 d. 6,000,000 с.
Problem 5-10 (AICPA Adapted) Hancock Company reported the following noncurrent liabilities on December 31, 2020: Unsecured 9% registered bond, P250,000 maturing annually beginning in 2021 11% convertible bonds, callable beginning in 2021, due 2022 2,750,000 1,250,000 Secured 12% guaranty security bonds, due 2022 10% commodity backed bonds, P500,000 maturing annually beginning in 2021 2,500,000 2,000,000 1. What total amount of serial bonds should be reported? a. 4,750,000 b. 3,750,000 c. 4,500,000 d. 2,000,000 2. What is the total amount of debenture bonds? a. 4,000,000 b. 1,250,000 c. 6,500,000 d. 6,000,000 с.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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11% convertible bonds, callable
liabilities on December 31, 2020:
Hancock Company reported the following noncurrent
9% registered bond, P250,000 maturing annually
Problem 5-10 (AICPA Adapted)
on December 31, 2020:
Unsecured
beginning in 2021
2,750,000
beginning in 2021, due 2022
1,250,000
Secured
12% guaranty security bonds, due 2022
10% commodity backed bonds, P500,000
maturing annually beginning in 2021
2,500,000
2,000,000
1. What total amount of serial bonds should be reported?
a. 4,750,000
b. 3,750,000
c. 4,500,000
d. 2,000,000
2. What is the total amount of debenture bonds?
a. 4,000,000
b. 1,250,000
c. 6,500,000
d. 6,000,000
189
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