Reference no: EM133003313

Questions -

Q1. On June 30, 2020, Hello Company issued at 99, five thousand bonds of 8%, P1,000 face amount. The bonds were issued through an underwriter to whom the entity paid bond issue cost of P425,000. June 30, 2020, what amount should be reported as bond liability?

Q2. On November 1, 2020, Mill Company issued P5,000,000 of 10-year, 6% term bonds dated July 1, 2020. Interest is paid every June 30 and December 31. What amount of accrued interest on November 1, 2020?

Q3. What amount should be recorded as bond issue costs to be amortized over term of the bonds?

During the current year, Eddie Company incurred the following costs connection with the issuance of bonds:

Promotion cost 350,000

Printing and engraving 140,600

Legal fees 730,780

Fees paid to independent accountants for registration. 120,000

Commission paid to underwriter. 1,500,700

Q4. On March 1, 2020, Coco Company issued at 103 plus accrued interest 4,000 bonds of 9%, P1,000 face amount. The bonds are dated January 1, 2020 and mature on January 1, 2030. Interest is payable semiannually on January 1 and July 1. The entity paid bond issue cost of P190,000. What is the net cash received from the bond issuance?

Q5. On January 1, 2020, Essay Company received P1,077,200 for 12% bonds with face amount of P1,000,000. The bonds were sold to yield 10%. Interest is payable semiannually every January 1 and July 1. What amount should be reported as interest expense for 2020?