Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

How to solve these? Mabuhay Company leased equipment on January I, 2020. Annual rental to be paid at the end of each year is P1601300

How to solve these?

image text in transcribed
Mabuhay Company leased equipment on January I, 2020. Annual rental to be paid at the end of each year is P1601300 for five years. The implicit rate for this lease is 6%. The present value at an ordinary annuity of I at 6% for 5 periods is 4.2124. On January I, 2022, Mabuhay Company and the lessor agreed to amend the original terms of the lease by reducing the annual lease payment by P32,000 and increasing the implicit rate to 8%. The present value of an ordinary annuity of 1 at 8% for 3 periods is 2.577]. What is the amount of lease liability on January 'I, 2020? On July 1, 201?, Peter Company Issued 4,000 of its 8%. P1,000tace value bonds payable for P3,504.000. The bonds were Issued to yield 10%. The bonds are dated July I, 2019 and mature July I, 2029. Interest is payable semiannually on January 1 and July 1. Using eftectlve interest method, what amount of the bond discount should be amortized tor the six months ended December 31. 2019

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting Volume 1

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy

12th Canadian edition

119-49633-5, 1119496497, 1119496330, 978-1119496496

More Books

Students also viewed these Accounting questions

Question

What are the purposes of a statement of cash flows?

Answered: 1 week ago

Question

x-3+1, x23 Let f(x) = -*+3, * Answered: 1 week ago

Answered: 1 week ago