Problem 3 Bond Amortization (Discount) On January 1, 2022, Goldeneye Corp. issued a 5-year bond with a face value of P6,000,000 with a nominal rate of 10% for P5,567,426.86. This issuance has an effective rate of 12%. The interest is payable every December 31. The face value of the bond will be repaid at the end of 5 years. Using the effective interest method, complete the amortization table Date Interest Payments Interest Expense Amortization Carrying Value January 1, 2022 December 31, 2022 December 31, 2023 December 31, 2024 December 31, 2025 December 31, 2026

Problem 3 Bond Amortization (Discount) On January 1, 2022, Goldeneye Corp. issued a 5-year bond with a face value of P6,000,000 with a nominal rate of 10% for P5,567,426.86. This issuance has an effective rate of 12%. The interest is payable every December 31. The face value of the bond will be repaid at the end of 5 years. Using the effective interest method, complete the amortization table Date Interest Payments Interest Expense Amortization Carrying Value January 1, 2022 December 31, 2022 December 31, 2023 December 31, 2024 December 31, 2025 December 31, 2026

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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