ABC Co. Plans to issue a 12%, 5 - Year, P1,000,000 Bonds, dated January 1 2020. Principal

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ABC Co. Plans to issue a 12%, 5 - Year, P1,000,000 Bonds, dated January 1 2020. Principal is due at maturity but interest is due annually. Current Market rate is 10%.

The Bond was issued July 1, 2020 and was subsequently Retired on March 31, 2023 at call premium of P30,000 incurring P20,000 direct cost.

How much is the Total Proceeds from the issuance?

What is the Carrying Value of the Bonds on December 31, 2021?

What is the Carrying Value of the Bond on December 31, 2025?

What is the Carrying Value of the Bonds on March 31, 2023?

How much is the Gain on extinguished bonds?

Related Book For answer-question

Fundamental financial accounting concepts

ISBN: 978-0078025365

8th edition

Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward

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Posted Date: May 16, 2023 03:35 AM

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ABC Co. Plans to issue a 12%, 5 - Year, P1,000,000 Bonds, dated January 1 2020. Principal

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To answer your questions lets break down the information provided and calculate the relevant values step by step Total Proceeds from the issuance The total proceeds from the issuance of the bonds can ... View the full answer

Fundamental financial accounting concepts

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