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Compute the interest income to be presented

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Reference no: EM133172981

Question - Cathy Company acquired P2,000,000 bonds on May 1, 2017 and its accountant correctly prepared the following entry

Investment in Debt Securities at Amortized Cost 2,294,416

Cash 2,294,416

These bonds pay interest at a rate of 8% per annum every April 30 and will mature after 10 years. Market rate of interest for the same bonds was 6%. Based on the foregoing, determine the following:

1. Compute the premium amortization for the year 2017.

2. Compute the interest income to be presented in the 2019 Statement of Comprehensive Income.

Reference no: EM133172981

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