On January 1, 20x1, ABC Co. issued its 8%, ₱2,000,000 bonds. Principal is due on December 31, 20x3 but interest is payable annually on December 31. The effective interest rate is 10%. At December 31, 20x1, how much is unamortized discount on bonds payable? PV of P1 at 8% for 3n = . 79383 PV of P1 at 10% for 3n = .75131 PV ordinary annuity at 8% for 3n = 2.57710 PV ordinary annuity at 10% for 3n = 2.48685
On January 1, 20x1, ABC Co. issued its 8%, ₱2,000,000 bonds. Principal is due on December 31, 20x3 but interest is payable annually on December 31. The effective interest rate is 10%. At December 31, 20x1, how much is unamortized discount on bonds payable? PV of P1 at 8% for 3n = . 79383 PV of P1 at 10% for 3n = .75131 PV ordinary annuity at 8% for 3n = 2.57710 PV ordinary annuity at 10% for 3n = 2.48685
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 20x1, ABC Co. issued its 8%, ₱2,000,000 bonds. Principal is due on December 31, 20x3 but interest is payable annually on December 31. The effective interest rate is 10%. At December 31, 20x1, how much is unamortized discount on bonds payable?
PV of P1 at 8% for 3n = . 79383 PV of P1 at 10% for 3n = .75131
PV ordinary annuity at 8% for 3n = 2.57710 PV ordinary annuity at 10% for 3n = 2.48685
PV of P1 at 8% for 3n = . 79383 PV of P1 at 10% for 3n = .75131
PV ordinary annuity at 8% for 3n = 2.57710 PV ordinary annuity at 10% for 3n = 2.48685
69,432
71,326
99,484
103,080
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