On January 1, 2021, Marsh Company issued 10% bonds payable in the face amount of P6,000,000. The
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On January 1, 2021, Marsh Company issued 10% bonds payable in the face amount of P6,000,000. The bonds mature on January 1, 2031. The bonds were issued for P5,316,000 to yield 12% resulting in bond discount of P684,000. The entity used the effective interest method of amortizing bond discount. Interest is payable semiannually on January 1 and July 1.
For the six months ended June 30, 2021, what amount should be reported as bond interest expense?
300,000 | ||
341,040 | ||
334,200 | ||
318,960 |
Related Book For
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
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