Please Do not Give image format and details solution 5. On July 1, 2023, MAYA Company issued four-year, 10% interest-bearing bonds withtotal face amount of P10,000,000. The bonds are payable in four equal annualinstallments every June 30, starting on June 30, 2024. In addition, interest is alsopayable every June 30 of each year. Market rates on the date of issuance averaged9%.Interest expense for the year 2024 shall bea. P686,717b. P802,862c. P1,000,000d. P919,007Carrying amount of the bonds as of December 31, 2025 shall bec. P5,044,922d. P3,794,922a. P5,066,911b. P2,522,933

Given in the question: Coupon Rate = 10% Face Value = P10,000,000 It has been given that market rate…

Answered: Interest expense for the year 2024…

Interest expense for the year 2024 shall be a. P686,717 b. P802,862 c. P1,000,000 d. P919,007 Carrying amount of the bonds as of December 31, 2025 shall be

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 15MCQ

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Question

Please Do not Give image format and details solution

5. On July 1, 2023, MAYA Company issued four-year, 10% interest-bearing bonds with
total face amount of P10,000,000. The bonds are payable in four equal annual
installments every June 30, starting on June 30, 2024. In addition, interest is also
payable every June 30 of each year. Market rates on the date of issuance averaged
9%.
Interest expense for the year 2024 shall be
a. P686,717
b. P802,862
c. P1,000,000
d. P919,007
Carrying amount of the bonds as of December 31, 2025 shall be
c. P5,044,922
d. P3,794,922
a. P5,066,911
b. P2,522,933

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