Question
On January 1, 2021, a company issued 1,000 of its 8% 5-year P5,000 convertible bonds at P200,000 premium. Interests on these bonds are payable every
On January 1, 2021, a company issued 1,000 of its 8% 5-year P5,000 convertible bonds at P200,000 premium. Interests on these bonds are payable every December 31. The bonds are convertible into 40,000 of the companys ordinary shares with par value of P100. On December 31, 2023, 200 bonds were converted while at the end of 2024, 400 bonds were retired at P2,020,000. Without the conversion feature, the market rate of interest for the companys bonds on January 1, 2021 and December 31, 2024 are 10% and 11%, respectively. What is the carrying amount of the bonds on December 31, 2023?
(Round off PV factor to 2 decimal places. Round off final answer to the nearest peso.)
Full computation please ;))) Thank you so much! (Limited time only)
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