Question
On January 1, 2020, Pony Company acquired P5,000,000 12% bonds to be held as financial assets at amortized cost for P5,250,000 plus transaction costs of
On January 1, 2020, Pony Company acquired P5,000,000 12% bonds to be held as financial assets at amortized cost for P5,250,000 plus transaction costs of P124,000. Interest is payable annually on December 31. The bonds mature on January 1, 2025.
The effective interest method of amortization is used. The bonds have a 10% effective yield. What is the interest income for the year 2020?
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Modern Auditing Study Guide
Authors: Walter G. Kell
4th Edition
0471619434, 978-0471619437
