Question
PLEASE DON'T ANSWER IF YOU WILL NOT ANSWER EVERYTHING. I WILL SURELY VOTE FOR COMPLETE AND CORRECT ANSWERS. E.) On July 1, 2021, Tara Company
PLEASE DON'T ANSWER IF YOU WILL NOT ANSWER EVERYTHING. I WILL SURELY VOTE FOR COMPLETE AND CORRECT ANSWERS.
E.) On July 1, 2021, Tara Company issued 4,000 bonds of 8%, P1,000 face amount for P3,504,000. The bonds were issued to yield 10%. The bonds are dated July 1, 2021 and mature on July 1, 2030. Interest is payable semiannually on January 1 and July 1.
What amount of the bond discount should be amortized for the six months ended December 31, 2021?
30,400 | ||
24,800 | ||
19,840 | ||
15,200 |
F.) On January 1, 2021, Ward Company issued a 9% bonds with face amount of P4,000,000, which mature on January 1, 2031. The bonds were issued for P3,756,000 to yield 10%, resulting in a bond discount of P244,000. The entity used the interest method of amortizing bond discount. Interest is payable annually on December 31.
1. On December 31, 2021, what is the balance of the discount on bonds payable?
206,440 | ||
204,000 | ||
228,400 | ||
208,000 |
QUESTION 2
-
2. What is the carrying amount of bond payable on December 31, 2021?
3,740,000
4,000,000
3,771,600
3,756,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started