Alyssa Company issued P 10,000,000 bonds on January 1, 2021. The bonds pay interest annually at 10% on the outstanding bond balance. The face value of the bonds is payable in installments of P 2,000,000 every December 31 starting December 31, 2021. The bonds were sold to yield 14%.
Alyssa Company issued P 10,000,000 bonds on January 1, 2021. The bonds pay interest annually at 10% on the outstanding bond balance. The face value of the bonds is payable in installments of P 2,000,000 every December 31 starting December 31, 2021. The bonds were sold to yield 14%.
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
ChapterMB: Model-building Problems
Section: Chapter Questions
Problem 13M
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Question
Alyssa Company issued P 10,000,000 bonds on January 1, 2021. The bonds pay interest annually at 10% on the outstanding bond balance. The face
- What is the issue price of the bonds on January 1, 2021? Do not round off your present value factors but round off to two decimal places the final answer.
- How much cash was paid on December 31, 2025? Do not round off your present value factors but round off to two decimal places the final answer.
- How much cash was paid on December 31, 2024? Do not round off your present value factors but round off to two decimal places the final answer.
- What is the balance of the Discount on Bonds Payable on December 31, 2021 ? Do not round off your present value factors but round off to two decimal places the final answer.
- What is the interest expense on December 31, 2025? Do not round off your present value factors but round off to two decimal places the final answer.
- What is the current portion of the liability on December 31, 2021? Do not round off your present value factors but round off to two decimal places the final answer.
- What is the current portion of the liability on December 31, 2022? Do not round off your present value factors but round off to two decimal places the final answer.
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