Yoimiya Corporation is authorized to issue P10,000,000 of 5-year bonds dated June 30, 2022 with a stated interest rate of 9%. Interest on the bonds is payable semiannually on June 30 and December 31. The company uses the effective interest method of amortization. The bonds were sold to yield 8%. Present value factor of P1 lumpsum using 4% for 10 periods is .6756 Present value factor of P1 ordinary annuity using 4% for 10 periods is 8.1109 Required: Determine the bond issue price. Determine the nominal interest for the year ended December 31, 2022. Determine the interest expense to be recognized for the year ended December 31, 2022. What is the carrying value of the bonds at December 31, 2022?
Yoimiya Corporation is authorized to issue P10,000,000 of 5-year bonds dated June 30, 2022 with a stated interest rate of 9%. Interest on the bonds is payable semiannually on June 30 and December 31. The company uses the effective interest method of amortization. The bonds were sold to yield 8%.
Present value factor of P1 lumpsum using 4% for 10 periods is .6756
Present value factor of P1 ordinary annuity using 4% for 10 periods is 8.1109
Required:
Determine the
Determine the nominal interest for the year ended December 31, 2022.
Determine the interest expense to be recognized for the year ended December 31, 2022. What is the carrying value of the bonds at December 31, 2022?
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