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On July 1, 2020,Hawkeye Company purchased P1,000,000 8% bonds for P866,000. Acquisition cost amounted to P30,000. The bonds were purchased to yield 10% interest. The
| On July 1, 2020,Hawkeye Company purchased P1,000,000 8% bonds for P866,000. Acquisition cost amounted to P30,000. The bonds were purchased to yield 10% interest. | |
| The bonds mature on January 1, 2026, and pay interest annually on January 1. Hawkeye uses the effective interest method of amortization. | |
| On December 31, 2020, what carrying amount should be reported as investment in bonds? |
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Excel For Accountants Tips, Tricks & Techniques
Authors: Conrad Carlberg
1st Edition
1932925015, 9781932925012
