Yelan Company issued P8,000,000 bonds on bond issue date, December 31, 2022. Thebonds pay interest annually at 8% on the outstanding bond balance. The face value of thebonds is payable in installments of P1,600,000 every December 31, starting December31, 2023. The bonds were sold at a price that yields 12%.PV factor of P 1 lumpsum using 12% for 1 period is 8929PV factor of P 1 lumpsum using 12% for 2 period is .7972PV factor of P1 lumpsum using 12% for 3 period is .7118PV factor of P1 lumpsum using 12% for 4 period is 6355PV factor of P1 lumpsum using 12% for 5 period is 5674Required:Determine the issue price of the bonds on December 31, 2022.How much interest expense must Yelan Company recognize for the year ended December31, 2023?Þetermine the amortized cost of the bonds payable as of December 31, 2024.

Bonds are the units of corporate debt that are issued by businesses and repackaged as tradable…

Answered: Yelan Company issued P8,000,000 bonds…

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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