Submarine Company issued P1,000,000 par value, 12% bonds on January 2, 2020. The bonds mature in 10 years and pay interest semi-annually. The bonds were issued for P893,640 which yield an effective interest rate of 14%. What is the carrying amount of the bonds payable at December 31, 2020? A. 898,750 B. 904,276 C. 893,640 D. 898,929

Submarine Company issued P1,000,000 par value, 12% bonds on January 2, 2020. The bonds mature in 10 years and pay interest semi-annually. The bonds were issued for P893,640 which yield an effective interest rate of 14%. What is the carrying amount of the bonds payable at December 31, 2020? A. 898,750 B. 904,276 C. 893,640 D. 898,929

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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