Alyssa Company issued P 10,000,000 bonds on January 1, 2021. The bonds pay interest annually at 10% on the outstanding bond balance. The face value of the bonds is payable in installments of P 2,000,000 every December 31 starting December 31, 2021. The bonds were sold to yield 14%.What is the issue price of the bonds on January 1, 2021? Do not round off your present value factors but round off to two decimal places the final answer. How much cash was paid on December 31, 2025? Do not round off your present value factors but round off to two decimal places the final answer. How much cash was paid on December 31, 2024? Do not round off your present value factors but round off to two decimal places the final answer. What is the balance of the Discount on Bonds Payable on December 31, 2021 ? Do not round off your present value factors but round off to two decimal places the final answer. What is the interest expense on December 31, 2025? Do not round off your present value factors but round off to two decimal places the final answer. What is the current portion of the liability on December 31, 2021? Do not round off your present value factors but round off to two decimal places the final answer. What is the current portion of the liability on December 31, 2022? Do not round off your present value factors but round off to two decimal places the final answer.

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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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Alyssa Company issued P 10,000,000 bonds on January 1, 2021. The bonds pay interest annually at 10% on the outstanding bond balance. The face value of the bonds is payable in installments of P 2,000,000 every December 31 starting December 31, 2021. The bonds were sold to yield 14%.

What is the issue price of the bonds on January 1, 2021? Do not round off your present value factors but round off to two decimal places the final answer.
How much cash was paid on December 31, 2025? Do not round off your present value factors but round off to two decimal places the final answer.
How much cash was paid on December 31, 2024? Do not round off your present value factors but round off to two decimal places the final answer.
What is the balance of the Discount on Bonds Payable on December 31, 2021 ? Do not round off your present value factors but round off to two decimal places the final answer.
What is the interest expense on December 31, 2025? Do not round off your present value factors but round off to two decimal places the final answer.
What is the current portion of the liability on December 31, 2021? Do not round off your present value factors but round off to two decimal places the final answer.
What is the current portion of the liability on December 31, 2022? Do not round off your present value factors but round off to two decimal places the final answer.

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