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What is carrying value of the bonds payable on december

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Reference no: EM133163090

Question - At December 31, 2021, Emote Corporation had the following liability and equity account balances:

11% Bonds Payable, at face value P 2,500,000

Premium on bonds payable 176,190

Ordinary Share Capital 4,000,000

Share Premium 1,147,500

Retained Earnings 1,232,500

Treasury stock, at cost 162,500

Transactions during 2022 and other information relating to the Corporation's liability and equity accounts were as follows:

The bonds were issued on December 31, 2019, for P2,689,000 to yield 10%. The bonds mature on December 31, 2034. Interest is payable annually on December 31. The Corporation uses the effective interest method to amortize bond premium.

At December 31, 2021, the Corporation had 1,000,000 authorized shares of P10 par ordinary shares.

On January 15, 2022, the Corporation reissued 7,500 of its 12,500 shares of treasury stock for P112,500. The treasury stock had been acquired on February 28, 2021.

On November 2, 2022, the Corporation borrowed P2,000,000 at 9%, evidenced by a note payable to BPI. The note is payable in five equal annual principal installments of P400,000. The first principal and interest payment is due on November 2, 2023.

On December 31, 2022, the Corporation owned 5,000 shares of Viva Corporation's ordinary share which represented a 1% ownership interest. The corporation accounts for this marketable security investment as trading securities. The stock was purchased on May 16, 2021 at P20 per share. The market price was P21 per share on December 31, 2022.

Required -

1. How much is the bond premium amortization for 2022?

2. What is carrying value of the bonds payable on December 31, 2022?

3. How much is the 2022 interest expense on bonds payable?

4. What is the treasury stock balance on December 31, 2022?

5. What is the long-term portion of the note payable to bank as of December 31, 2022?

6. What is the 2022 interest expense?

7. What is the unrealized gain or loss on marketable trading equity securities at December 31, 2022?

Reference no: EM133163090

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