On January 1, 2022, an entity issued 10-year bonds with face amount of P2,500,000 for P2,887,500....

Transcribed Image Text:

On January 1, 2022, an entity issued 10-year bonds with face amount of P2,500,000 for P2,887,500. The entity paid bond issue cost of P50,000 on same date. The stated interest rate on the bonds is 10% payable annually every December 31. The bonds have an 8% yield per annum after considering the bond issue cost. The entity used the effective interest method of amortizing bond premium. 22. What is the interest expense for 2024? 23. What is the carrying amount of the bonds payable on December 31, 2024? On January 1, 2022, an entity issued 10-year bonds with face amount of P2,500,000 for P2,887,500. The entity paid bond issue cost of P50,000 on same date. The stated interest rate on the bonds is 10% payable annually every December 31. The bonds have an 8% yield per annum after considering the bond issue cost. The entity used the effective interest method of amortizing bond premium. 22. What is the interest expense for 2024? 23. What is the carrying amount of the bonds payable on December 31, 2024?

Answer rating: 100% (QA)

Bond Amortization Schedule Effective Interest Method Given Face amount F P2500000 Issue price P P2887500 Bond issue cost P50000 Stated interest rate S... View the full answer