Professional Documents
Culture Documents
a. 3,000,000
b. 4,000,000
c. 4,800,000
d. 7,000,000
a. 2,000,000
b. 1,000,000
c. 1,800,000
d. 0
a. 3,000,000
b. 3,500,000
c. 5,000,000
d. 6,500,000
On April 1, 2016, Greg Company issued at 99 plus accrued interest, 2,000 of 8% P1,000 face value bonds.
The bonds are dated January 1, 2016, mature on January 1, 2016, and pay interest on January 1 and July
1. The entity paid bond issue cost of P70,000.
a. 2,020,000
b. 1,980,000
c. 1,950,000
d. 1,910,000
On March 1, 2016, Cain Company issued at 103 plus accrued interest 4,000 of 9%, P1,000 face value
bonds. The bonds are dated January 1, 2016 and mature on January 1, 2016.
Interest is payable semiannually on January 1 and July 1. The entity paid bond issue cost of P200,000.
a. 4,320,000
b. 4,180,000
c. 4,120,000
d. 3,980,000
During the current year, Eddy Company incurred the following costs in connection with the issuance of
bonds:
What amount should be recorded as bond issue costs to be amortized over the term of the bonds?
a. 2,550,000
b. 2,750,000
c. 1,500,000
d. 1,050,000
On November 1, 2016, Mason Company issued P8,000,000 of 10-year, 8% term bonds dated October 1,
2016. The bonds were sold to yield 10% with total proceeds of P7,000,000 plus accrued interest. Interest
is paid every April 1 and October 1.
What amount should be reported as accrued interest payable on December 31, 2016?
a. 175,000
b. 160,000
c. 116,667
d. 106,667
On January 31, 2016, Beau Company issued P3,000,000 maturity value, 12% bonds for P3,000,000 cash.
The bonds are dated December 31, 2015 and mature on December 31, 2025. Interest is payable
semiannually on June 30 and December 31.
What amount of accrued interest payable should be reported on September 30, 2016?
a. 270,000
b. 240,000
c. 180,000
d. 90,000
On June 30, 2016, Huff Company issued at 99, five thousand of 8%, P1,000 face value bonds.
The bonds were issued through an underwriter to whom the entity paid bond issue cost of P425,000.
a. 4,525,000
b. 4,950,000
c. 5,000,000
d. 4,575,000
Problem 8-10 (AICPA Adapted)
On July 1, 2016, Carr Company issued at 104, five thousand of 10% P1,000 far value bonds. The bonds
were issued through an underwriter to whom the entity paid bond issue cost of P125,000.
a. 4,875,000
b. 5,075,000
c. 5,200,000
d. 5,325,000
Aye Company is authorized to issue P5,000,000 of 6%, 10-year bonds dated July 1, 2016 with interest
payments on June 30 and December 31. When the bonds are issued on November 1, 2016, the entity
received cash of P5,150,000 including accrued interest.