On January 1, 2023, Wei Ling Company purchased bonds with face amount of P6250.000 for PS,950,000 including transaction cost of P200,000. The bonds mature on December 31. 2025 and pay 10% interest annually on December 31 with a 12% effective yield. The bonds are quoted at 102 on December 31, 2023 and 105 on December 31. 2024. How much is the Interest income for the year 2023? O P714.000 O P610.000 O P72480 O PA25.000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On January 1, 2023, Wei Ling Company purchased bonds with face amount of P6.250.000 for
PS,950.000 including transaction cost of P200,000.
The bonds mature on December 31, 2025 and pay 10% interest annually on December 31 with a
12% effective yield.
The bonds are quoted at 102 on December 31, 2023 and 105 on December 31, 2024.
How much is the interest income for the year 2023?
O P714.000
O P610.000
O P724.680
O PA25.000
Transcribed Image Text:On January 1, 2023, Wei Ling Company purchased bonds with face amount of P6.250.000 for PS,950.000 including transaction cost of P200,000. The bonds mature on December 31, 2025 and pay 10% interest annually on December 31 with a 12% effective yield. The bonds are quoted at 102 on December 31, 2023 and 105 on December 31, 2024. How much is the interest income for the year 2023? O P714.000 O P610.000 O P724.680 O PA25.000
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