A Co. 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 amount was recorded as discount or premium on bonds payable? a. 150,000 bond discount b. 50,000 bond premium c. no bond premium or discount d. 150,000 bond premium
A Co. 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 amount was recorded as discount or premium on bonds payable? a. 150,000 bond discount b. 50,000 bond premium c. no bond premium or discount d. 150,000 bond premium
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 4EA: On January 1, 2018, Wawatosa Inc. issued 5-year bonds with a face value of $200,000 and a stated...
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A Co. 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 amount was recorded as discount or premium on bonds payable?
a. 150,000 bond discount
b. 50,000 bond premium
c. no bond premium or discount
d. 150,000 bond premium
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