How much is the issue price of bonds for pharaoh company

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Problem 1: On January 1, 2020, Pharaoh Company issued 3-year bonds with a face value 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 acquired to yield 10%. The bonds were appropriately classified as financial liability at amortized cost. How much is the issue price of bonds on January 1, 2020? (PVF 4 decimal points).

Problem 2: How much is the interest expense for 2020?

Reference no: EM132850029

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