If the bonds are retired on January 1, 2021, at 103, what will SIGE NA report as a loss on redemption? *see attacheda. P 250,000b. P 365,000c. P 400,000d. P 425,000 SIGE NA Company has the following book balances at Dec.31,2020Bonds PayableDiscount on Bonds PayableInterest PayableP 2,500,000200,00060,000Unamortized Bond Issue Costs150,000

Loss on redemption on bonds = Unamortized Discount on bonds + Unamortized bond issue costs + Premium…

Answered: SIGE NA Company has the following book…

SIGE NA Company has the following book balances at Dec.31,2020 Bonds Payable Discount on Bonds Payable Interest Payable P 2,500,000 200,000 60,000 Unamortized Bond Issue Costs 150,000

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Contingent Liabilities and Provisions

A contingent liability can be defined as a liability the occurrence of which is dependent upon the happening of an uncertain future event. It is generally recorded in the books only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly.

Question

If the bonds are retired on January 1, 2021, at 103, what will SIGE NA report as a loss on redemption? *see attached

a. P 250,000
b. P 365,000
c. P 400,000
d. P 425,000

SIGE NA Company has the following book balances at Dec.31,2020
Bonds Payable
Discount on Bonds Payable
Interest Payable
P 2,500,000
200,000
60,000
Unamortized Bond Issue Costs
150,000

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