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5. On July 1,2023 , MAYA Company issued four-year, 10% interest-bearing bonds with total face amount of P10,000,000. The bonds are payable in four equal
5. On July 1,2023 , MAYA Company issued four-year, 10% interest-bearing bonds with total face amount of P10,000,000. The bonds are payable in four equal annual installments every June 30 , starting on June 30 , 2024. In addition, interest is also payable every June 30 of each year. Market rates on the date of issuance averaged 9%. Interest expense for the year 2024 shall be a. P686,717 b. P802,862 c. P1,000,000 d. P919,007 Carrying amount of the bonds as of December 31,2025 shall be a. P5,066,911 b. P2,522,933 c. P5,044,922 d. P3,794,922
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