On January 1, 2001, HINDI AKO BABAGSAK issued 1,000, P4,000, 10%, 3-year bonds for P3,807,852. Principal is due on December 31, 2003 but interests are due annually every year-end. In addition, HINDI AKO BABAGSAK incurred bond issue costs of P179,316. The effective interest rate is 12% before adjustment for bond issue costs and 14% after adjustment for bond issue costs. 32. How much is the carrying amount of the note on initial recognition? a. 3,628,536 b. 4,000,000 c. 3,635,340 d. 3,754,309 33. How much is the interest expense in 2001? a. 435,424 b. 576,240 c. 507,995 d. 400,000 34. How much is the carrying amount of the note on December 31, 2001? a. 3,401,832 b. 3,391,580 c. 3,288,776 d. 3,736,531
On January 1, 2001, HINDI AKO BABAGSAK issued 1,000, P4,000, 10%, 3-year bonds
for P3,807,852. Principal is due on December 31, 2003 but interests are due annually
every year-end. In addition, HINDI AKO BABAGSAK incurred bond issue costs of
P179,316. The effective interest rate is 12% before adjustment for bond issue costs and
14% after adjustment for bond issue costs.
32. How much is the carrying amount of the note on initial recognition?
a. 3,628,536
b. 4,000,000
c. 3,635,340
d. 3,754,309
33. How much is the interest expense in 2001?
a. 435,424
b. 576,240
c. 507,995
d. 400,000
34. How much is the carrying amount of the note on December 31, 2001?
a. 3,401,832
b. 3,391,580
c. 3,288,776
d. 3,736,531
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
