n January 1, 2006, Naruto Company issued its 10% bonds in the face amount of P5,000,000, which mature on January 1, 2016. The bonds were issued for P5,675,000 to yield 8%, resulting in bond premium of P675,000. Naruto uses the interest method of amortizing bond premium. Interest is payable annually on December 31. At December 31, 2006, Naruto’s adjusted unamortized bond premium should be
n January 1, 2006, Naruto Company issued its 10% bonds in the face amount of P5,000,000, which mature on January 1, 2016. The bonds were issued for P5,675,000 to yield 8%, resulting in bond premium of P675,000. Naruto uses the interest method of amortizing bond premium. Interest is payable annually on December 31. At December 31, 2006, Naruto’s adjusted unamortized bond premium should be
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 15MCQ
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On January 1, 2006, Naruto Company issued its 10% bonds in the face amount of P5,000,000, which mature on January 1, 2016. The bonds were issued for P5,675,000 to yield 8%, resulting in bond premium of P675,000. Naruto uses the interest method of amortizing bond premium. Interest is payable annually on December 31. At December 31, 2006, Naruto’s adjusted unamortized bond premium should be
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