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4. At the beginning of 2020. Wallace Corporation issued 10% bonds with a face value of P900,000. These bonds mature in the five years, and interest is paid semi-annually on June 30 and December 31. The bonds were sold for P833,760 to yield 12%. Wallace uses a calendar-year reporting period. Using the effective – interest method of amortization, what amount of interest expense should be reported for 2020? (Round your answer in the nearest peso).

4. At the beginning of 2020. Wallace Corporation issued 10% bonds with a face value of P900,000. These bonds mature in the five years, and interest is paid semi-annually on June 30 and December 31. The bonds were sold for P833,760 to yield 12%. Wallace uses a calendar-year reporting period. Using the effective – interest method of amortization, what amount of interest expense should be reported for 2020? (Round your answer in the nearest peso).

FINANCIAL ACCOUNTING
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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4. At the beginning of 2020. Wallace Corporation issued 10% bonds with a face value of P900,000. These bonds mature in the five years, and interest is paid semi-annually on June 30 and December 31. The bonds were sold for P833,760 to yield 12%. Wallace uses a calendar-year reporting period. Using the effective – interest method of amortization, what amount of interest expense should be reported for 2020? (Round your answer in the nearest peso).
Transcribed Image Text:4. At the beginning of 2020. Wallace Corporation issued 10% bonds with a face value of P900,000. These bonds mature in the five years, and interest is paid semi-annually on June 30 and December 31. The bonds were sold for P833,760 to yield 12%. Wallace uses a calendar-year reporting period. Using the effective – interest method of amortization, what amount of interest expense should be reported for 2020? (Round your answer in the nearest peso).
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