Question
On January 1, 2019, Naga Company issued 3-year bonds with a face amount of P1,200,000 and stated interest rate of 8% per year payable annually
On January 1, 2019, Naga Company issued 3-year bonds with a face amount of P1,200,000 and stated interest rate of 8% per year payable annually on December 31. The bonds were acquired to yield 10%. The bonds were appropriately classified as financial liability at amortized cost.
(Round off present value factors up to four decimal places)
How much is the issue price of bonds on January 1, 2019?
Step by Step Solution
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Step: 1
Given data Face amount of bonds FV P1200000 Stated interest rate annual 8 ...
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Financial and Managerial Accounting
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
11th Edition
9780538480901, 9781111525774, 538480890, 538480904, 1111525773, 978-0538480895
