Compute for the carrying value on December

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Q1. On January 1, 2020 ABC Co. issued 3-year bonds with a face value of P1,200,000 and stated interest of 8% per year. The bonds mature in 3 equal annual installments every December 31. The interest is also payable every December 31. The bonds were acquired to yield 10%. The bonds were appropriately classified as financial liability at amortized cost. Compute for the carrying value on December 31, 2021.

Q2. On January 1, 2020, ABC co. issued 3-year bonds with a face value of P1,200,000 and stated interest of 8% per year payable annually on December 31. The bonds were acquired to yield 10%. The bonds were appropriately classified as financial liability at amortized cost. Compute for the interest expense for 2020.

Reference no: EM132676306

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