Aye Company is authorized to issue P5,000,000 of 6%, 10-year bonds dated July 1, 2021 with interest
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Question:
Aye Company is authorized to issue P5,000,000 of 6%, 10-year bonds dated July 1, 2021 with interest payments on June 30 and December 31. When the bonds are issued on November 1, 2021, the entity received cash of P5,150,000 including accrued interest.
What is the discount or premium from the issuance of the bonds?
50,000 bond premium | ||
No bond premium and discount | ||
150,000 bond premium | ||
150,000 bond discount |
Expert Answer:
B No bond premium and discount Bond Discount and Bond Premium When the market interest rate is highe... View the full answer
Related Book For 
College Accounting A Practical Approach Chapters 1-25
ISBN: 9780133791006
13th Edition
Authors: Jeffrey Slater
Posted Date:
