30. On January 1, 2023, AAA Company issued as amortized cost P5,000,000 face value,8% bonds for P4,562,000. The bonds were issued to yield 10%. The bonds mature on January 1, 2028 and pay interest annually on December 31. AAA uses the interest method of amortization. What is the carrying amount of the bonds payable on December 31, 2024?

30. On January 1, 2023, AAA Company issued as amortized cost P5,000,000 face value,8% bonds for P4,562,000. The bonds were issued to yield 10%. The bonds mature on January 1, 2028 and pay interest annually on December 31. AAA uses the interest method of amortization. What is the carrying amount of the bonds payable on December 31, 2024?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 95PSB

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