On January 1, 2019, Toni Corporation issued 3,000 of its 9%, P1,000 bonds when theprevailing market rate of interest was 8%. Interest is payable annually every January 1. Thebonds mature on January 1, 2024. Toni paid a transaction cost of P24,460 in relation to theissuance of bonds and in effect the yield rate is 8.2%. Toni uses the effective method ofamortization.Present value of 1 at 8.2% for 3 periods.78944.79383Present value of 1 at 8% for 3 periodsPresent value of annuity at 8.2% for 3 periods2.56782Present value of annuity at 8% for 3 periods2.5771038. On December 31, 2020 statement of financial position, how much would be shownas the carrying amount of the bonds payable?a. P3,022,181b. P3,042,681c. P3,061,631d. P3,077,31439. What is the balance of unamortized transaction cost or bond issue cost as ofDecember 31, 2020?a. P5,598b. P10,818c. P15,676d. P20,226

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On January 1, 2019, Toni Corporation issued 3,000 of its 9%, P1,000 bonds when the prevailing market rate of interest was 8%. Interest is payable annually every January 1. The bonds mature on January 1, 2024. Toni paid a transaction cost of P24,460 in relation to the issuance of bonds and in effect the yield rate is 8.2%. Toni uses the effective method of amortization. Present value of 1 at 8.2% for 3 periods .78944 Present value of 1 at 8% for 3 periods .79383 Present value of annuity at 8.2% for 3 periods 2.56782 Present value of annuity at 8% for 3 periods 2.57710 38. On December 31, 2020 statement of financial position, how much would be shown as the carrying amount of the bonds payable? a. P3,022,181 b. P3,042,681 c. P3,061,631 d. P3,077,314 39. What is the balance of unamortized transaction cost or bond issue cost as of December 31, 2020? a. P5,598 b. P10,818 c. P15,676 d. P20,226

On January 1, 2019, Toni Corporation issued 3,000 of its 9%, P1,000 bonds when the prevailing market rate of interest was 8%. Interest is payable annually every January 1. The bonds mature on January 1, 2024. Toni paid a transaction cost of P24,460 in relation to the issuance of bonds and in effect the yield rate is 8.2%. Toni uses the effective method of amortization. Present value of 1 at 8.2% for 3 periods .78944 Present value of 1 at 8% for 3 periods .79383 Present value of annuity at 8.2% for 3 periods 2.56782 Present value of annuity at 8% for 3 periods 2.57710 38. On December 31, 2020 statement of financial position, how much would be shown as the carrying amount of the bonds payable? a. P3,022,181 b. P3,042,681 c. P3,061,631 d. P3,077,314 39. What is the balance of unamortized transaction cost or bond issue cost as of December 31, 2020? a. P5,598 b. P10,818 c. P15,676 d. P20,226

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 7C

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