FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Holly Industries, Inc. issued P6,000,000 of 8% debentures on May 1, 2019 and received cash totaling P5,323,577. The bonds pay interest semiannually on May 1 and November 1. The firm uses the effective-interest method of amortizing discounts and premiums. The bonds were sold to yield an effective-interest rate of 10%.
Calculate the carrying amount of the bond on December 31, 2020.
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