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show your solution pls Problem 6-21 (AICPA Adapted) On January 1, 2020, Carrow Company issued 10% bonds in the face amount of P5,000,000 that mature
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Problem 6-21 (AICPA Adapted) On January 1, 2020, Carrow Company issued 10% bonds in the face amount of P5,000,000 that mature on December 31, 2029. The bonds were issued for P4,430,000 to yield 12% resulting in bond discount of P570,000, The entity used the interest method. Interest is payable semiannually on June 30 and December 31. 1. What amount should be reported as interest expense for 2020? a 532,548 b. 500,000 c. 531,600 d. 443,000 2. What is the carrying amount of the bonds payable on December 31, 2020? a. 4,430,000 b. 4,461,600 c. 4,462,548 d. 5,000,000 Problem 6.22 (FBS)Step by Step Solution
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