RebecoCa entity, purch o 'aɔr
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On July 1, 2021, Rebecca Company, a medium-sized entity, purchased P3 million face, 8%,
5-year bonds for P3,251,880. The effective rate o the bon is 6%. The bonds are dated July
1, 2021 and pays interest every June 30. The company has a business model of buying and
selling in order to make profits for all debt securities. What is the total interest income to
be recognized by Rebecca in its December 31, 2021 profit or loss?
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