On November 1, 2021, Mason Company issued P4,000,000 of 10-year, 8% term bonds dated October 1, 2021. The bonds were sold to yield 10% with total proceeds of P3,500,000 plus accrued interest. Interest is paid every April 1 and October 1. What amount should be reported as accrued interest payable on December 31, 2021?
On November 1, 2021, Mason Company issued P4,000,000 of 10-year, 8% term bonds dated October 1, 2021. The bonds were sold to yield 10% with total proceeds of P3,500,000 plus accrued interest. Interest is paid every April 1 and October 1. What amount should be reported as accrued interest payable on December 31, 2021?
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 7EA: On Jan. 1, Year 1, Foxcroft Inc. issued 100 bonds with a face value of $1,000 for $104,000. The...
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On November 1, 2021, Mason Company issued P4,000,000 of 10-year, 8% term bonds dated
October 1, 2021. The bonds were sold to yield 10% with total proceeds of P3,500,000 plus
accrued interest. Interest is paid every April 1 and October 1.
What amount should be reported as accrued interest payable on December 31, 2021?
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