Question
On January 1, 2020, Ezekiel Company received P1,077,200 for P1,000,000 face amount 12% bonds. The bonds were sold to yield 10%. Interest is payable semiannually
On January 1, 2020, Ezekiel Company received P1,077,200 for P1,000,000 face amount 12% bonds. The bonds were sold to yield 10%. Interest is payable semiannually every January 1nad July 1. The entity has elected the fair value option for valuing financial liabilities. On December 31, 2020, the fair value of the bonds is determined to be P1,064,600.
11. What is the carrying amount of the bonds payable on January 1, 2020?
12. What is the interest expense for 2020?
13. What is the gain or loss from change in fair value of the bonds for 2020?
14. What is the carrying amount of the bonds payable on December 31, 2020?
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Management Accounting Information for Decision-Making and Strategy Execution
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young
6th Edition
137024975, 978-0137024971
