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Jun 01, 2020

Solved: On June 1, 2020, XYZ Company Issued Its 12% Callab ...

On June 1, 2020, XYZ Company issued its 12% callable bonds in the face amount of P5,000,000 which matures on May 31, 2030. The market rate of the bonds is 9%. The interest payment date is on May 31 and November 30. XYZ Company uses the effective interest of amortizing discount and premium.. On April 30 2022, XYZ calls the entire issue at 99 and cancels it.

Required:

1. Compute for the issue price of the bonds. Round-off your answer to whole number.

2. Complete the amortization table below: Round-off your answer to whole numbers.

Date	Int payment	Interest Expense	Premiium or Discount Amortization	UnAmortized Premium/Discount	Carrying Value
June 1, 2020
November 30, 2021
May 31, 2021