Question
Related data of John-j Company: Face amount P2,550,000 Nominal rate 12% Effective rate 14% Date of issue January 1, 2021 Annual payment every December 31
Related data of John-j Company:
Face amount P2,550,000
Nominal rate 12%
Effective rate 14%
Date of issue January 1, 2021
Annual payment every December 31 P850,000 (Principal and interest)
Interest is payable annually every December 31
The entity used 3 decimal places for the PVF.
Requirements:
- What is the present value of the bonds payable on January 1, 2021?
- What is the present value of the bonds payable on December 31, 2021?
- Amortization table.
- What are the related journal entries (Year 1)?
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Fundamentals of Cost Accounting
Authors: William Lanen, Shannon Anderson, Michael Maher
3rd Edition
9780078025525, 9780077517359, 77517350, 978-0077398194
