On January 1, 2009, Zero Co. issued its 10% bonds in the face amount of P4,000,000, which mature on January 1, 2019. The bonds were issued for P4,540,000 to yield 8%, resulting in bond premium of P540,000. Zero uses the effective interest method of amortizing bond premium. Interest is payable annually on December 31. At December 31, 2009, Zero's adjusted unamortized bond premium should be
On January 1, 2009, Zero Co. issued its 10% bonds in the face amount of P4,000,000, which mature on January 1, 2019. The bonds were issued for P4,540,000 to yield 8%, resulting in bond premium of P540,000. Zero uses the effective interest method of amortizing bond premium. Interest is payable annually on December 31. At December 31, 2009, Zero's adjusted unamortized bond premium should be
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 6PA: Aggies Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1,...
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On January 1, 2009, Zero Co. issued its 10% bonds in the face amount of P4,000,000, which mature on January 1, 2019. The bonds were issued for P4,540,000 to yield 8%, resulting in bond premium of P540,000. Zero uses the effective interest method of amortizing bond premium. Interest is payable annually on December 31. At December 31, 2009, Zero's adjusted unamortized bond premium should be
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