he following information foP the NeXT II anuary 1, 20x1, the BTr issues a 5-year, 6%, P2,000 1,900,000. Transaction costs on the issuance (bond i unt to P59,708. Interest payments are due every De the principal is due only at maturity date. Th- est rate adjusted for both the bond discount and is 8%. Iow much is the carrying amount of the bonds ecognition? 2,000,000 c. 1,959,709 d. 1,840,292 1,900,000 Cow much is the interest expense for 20x1? 160,000 156 777

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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amount to P59,708. Interest payments are due every December 31
On January 1, 20x1, the BTr issues a 5-year, 6%, P2,000,000 bonds
interest rate adjusted for both the bond discount and bond issue
for P1,900,000. Transaction costs on the issuance (bond issue costs)
A provision requires disclosure in the notes.
с. 10.3М
d. 9,633,314
hition?
10M-300x
but the principal is due only at maturity date. The effective
the carrying amo
a. 10M
b. 9.7М
Use the following information for the next three questions:
Costs)
December
due
amount to P59,708. Interest payments are
but the principal is due only at maturity date. The effect
interest rate adjusted for both the bond discount and bond ie
every
31
costs is 8%.
4. How much is the carrying amount of the bonds on initial
recognition?
a. 2,000,000
b. 1,900,000
c. 1,959,709.
d. 1,840,292
How much is the interest expense for 20x1?
c. 156,777
d. 147,223
a. 160,000
b. 152,000
6 How much is the carrying amount of the bonds on December
31, 20x1?
a. 1,867,515
b. 1,813,069
c. 1,932,000
d. 1,99,649
с.
7. Which of the following distinguishes a provision from of
types of liabilities?
a. A provision requires disclosure in the notes
b. A provision is supported by an
Transcribed Image Text:amount to P59,708. Interest payments are due every December 31 On January 1, 20x1, the BTr issues a 5-year, 6%, P2,000,000 bonds interest rate adjusted for both the bond discount and bond issue for P1,900,000. Transaction costs on the issuance (bond issue costs) A provision requires disclosure in the notes. с. 10.3М d. 9,633,314 hition? 10M-300x but the principal is due only at maturity date. The effective the carrying amo a. 10M b. 9.7М Use the following information for the next three questions: Costs) December due amount to P59,708. Interest payments are but the principal is due only at maturity date. The effect interest rate adjusted for both the bond discount and bond ie every 31 costs is 8%. 4. How much is the carrying amount of the bonds on initial recognition? a. 2,000,000 b. 1,900,000 c. 1,959,709. d. 1,840,292 How much is the interest expense for 20x1? c. 156,777 d. 147,223 a. 160,000 b. 152,000 6 How much is the carrying amount of the bonds on December 31, 20x1? a. 1,867,515 b. 1,813,069 c. 1,932,000 d. 1,99,649 с. 7. Which of the following distinguishes a provision from of types of liabilities? a. A provision requires disclosure in the notes b. A provision is supported by an
ntity
3 Entity A obtains a 6%, 5-year, P10M face amount loạn B.
A pays transaction cost (service charge) of 3%. How much
the carrying amount of the loan payable on initial recognition
10M-300x
с. 10.3М
a. 10M
d. 9,633,314
b. 9.7M
Use the following information for the next three questions:
On January 1, 20x1, the BTr issues a 5-year, 6%, P2,000,000 bonds
for P1,900,000. Transaction costs on the issuance (bond issue costs)
amount to P59,708. Interest payments are due every December 31
but the principal is due only at maturity date. The effective
interest rate adjusted for both the bond discount and bond issue
costs is 8%.
4. How much is the carrying amount of th
recognition?
on initial
a.
3 A a 6%, face Entity
Transcribed Image Text:ntity 3 Entity A obtains a 6%, 5-year, P10M face amount loạn B. A pays transaction cost (service charge) of 3%. How much the carrying amount of the loan payable on initial recognition 10M-300x с. 10.3М a. 10M d. 9,633,314 b. 9.7M Use the following information for the next three questions: On January 1, 20x1, the BTr issues a 5-year, 6%, P2,000,000 bonds for P1,900,000. Transaction costs on the issuance (bond issue costs) amount to P59,708. Interest payments are due every December 31 but the principal is due only at maturity date. The effective interest rate adjusted for both the bond discount and bond issue costs is 8%. 4. How much is the carrying amount of th recognition? on initial a. 3 A a 6%, face Entity
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