This problem has 4 questions. On December 1, 2018, AAA Corporation issued a five-year, non-convertible P5,000,000 face value 12% bonds for P5,386,072, a price that yields 10%. Interest is payable semiannually on June 1 and December 1. On August 1, 2021, AAA Corporation retired P3,000,000 of the bonds at 105 plus accrued interest. The accounting period for the AAA corporation is the calendar year. The following are the 4 questions: What is the carrying value of the bonds on December 31, 2019? What is the carrying value of the bonds retired? What is balance of unamortized premium on bonds payable on the P3,000,000 face value bonds retired? How much is the total cash received on the retirement of the P3,000,000 face value bonds retired? What is the carrying value of the bonds retired?

This problem has 4 questions. On December 1, 2018, AAA Corporation issued a five-year, non-convertible P5,000,000 face value 12% bonds for P5,386,072, a price that yields 10%. Interest is payable semiannually on June 1 and December 1. On August 1, 2021, AAA Corporation retired P3,000,000 of the bonds at 105 plus accrued interest. The accounting period for the AAA corporation is the calendar year. The following are the 4 questions: What is the carrying value of the bonds on December 31, 2019? What is the carrying value of the bonds retired? What is balance of unamortized premium on bonds payable on the P3,000,000 face value bonds retired? How much is the total cash received on the retirement of the P3,000,000 face value bonds retired? What is the carrying value of the bonds retired?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 6PA: Aggies Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1,...

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