What amount of the bond discount should be amortized

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Reference no: EM132774372

Problem 1: On July 1, 2019, Peter Company issued 4,000 of its 8%, P1,000 face value bonds payable for P3,504,000. The bonds were issued to yield 10%. The bonds are dated July 1, 2019 and mature July 1, 2029. Interest is payable semiannually on January 1 and July 1. Using effective interest method, what amount of the bond discount should be amortized for the six months ended December 31, 2019?

Reference no: EM132774372

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