Problem No. 4 On December 31, 2014, YEN Inc. issued a 3-year P4,500,000 serial bonds payable with 10% interest payable every December 31 starting in 2015. The P4,500,000 bonds is payable through equal annual instailment every December 31. The effective interest rate of the bonds is 8%. 8. What is the initial measurement of the bonds payable on December 31, 2014? 9. What is the interest expense for the year ended December 31, 2015? 10. What is the carrying value of bonds payable on December 31, 2016?

Problem No. 4 On December 31, 2014, YEN Inc. issued a 3-year P4,500,000 serial bonds payable with 10% interest payable every December 31 starting in 2015. The P4,500,000 bonds is payable through equal annual instailment every December 31. The effective interest rate of the bonds is 8%. 8. What is the initial measurement of the bonds payable on December 31, 2014? 9. What is the interest expense for the year ended December 31, 2015? 10. What is the carrying value of bonds payable on December 31, 2016?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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