On January 1, 2020, Jupiter Company reported 9% bonds payable of P4,000,000 less unamortized discount (balance of discount on bonds payable) of P320,000. Further examination revealed that these bonds were issued to yield 10%. Interest was paid on January 1 and July 1 of each year. On July 1, 2020, the entity retired the bonds at 103 (before maturity). What amount should be recognized as loss on retirement of bonds payable on July 1, 2020? 436,000 b. 440,000 c. 432,000 d. 120,000
On January 1, 2020, Jupiter Company reported 9% bonds payable of P4,000,000 less unamortized discount (balance of discount on bonds payable) of P320,000. Further examination revealed that these bonds were issued to yield 10%. Interest was paid on January 1 and July 1 of each year. On July 1, 2020, the entity retired the bonds at 103 (before maturity). What amount should be recognized as loss on retirement of bonds payable on July 1, 2020? 436,000 b. 440,000 c. 432,000 d. 120,000
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 4EB: Chung Inc. issued $50,000 of 3-year bonds on January 1, 2018, with a stated rate of 4% and a market...
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On January 1, 2020, Jupiter Company reported 9% bonds payable of P4,000,000 less unamortized discount (balance of discount on bonds payable) of P320,000. Further examination revealed that these bonds were issued to yield 10%. Interest was paid on January 1 and July 1 of each year. On July 1, 2020, the entity retired the bonds at 103 (before maturity).
What amount should be recognized as loss on retirement of bonds payable on July 1, 2020?
- 436,000 b. 440,000 c. 432,000 d. 120,000
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