Question
Alyssa Company issued P 10,000,000 bonds on January 1, 2021. The bonds pay interest annually at 10% on the outstanding bond balance. The face value
Alyssa Company issued P 10,000,000 bonds on January 1, 2021. The bonds pay interest annually at 10% on the outstanding bond balance. The face value of the bonds is payable in installments of P 2,000,000 every December 31 starting December 31, 2021. The bonds were sold to yield 14%.
a. What is the interest expense for the year 2021?
b. How much cash was paid on December 31, 2023?
c. What is the interest expense for the year 2023?
d. How much cash was paid on December 31, 2021?
e. What is the current portion of the liability on December 31, 2023 ?
f. What is the carrying value of the bond on December 31, 2024?
e. How much cash was paid on December 31, 2025?
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Financial Accounting Fundamentals
Authors: John J. Wild
5th edition
1308500102, 1308500106, 78025753, 978-0078025754
