What is the carrying value of bonds payable on december

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Problem 1: On December 31, 2014, YEN Inc. issued a 3-year P4,500,000 serial bonds payable with 10% interest payable every December 31 starting in 2015. The P4,500,000 bonds is payable through equal annual installment every December 31. The effective interest rate of the bonds is 8%. The bonds are properly classified at financial liability at amortized cost. What is the carrying value of bonds payable on December 31, 2016?

Reference no: EM132772396

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