What is the interest expense to be reported for the year

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Problem 1: Boni corporation issued P5,000,000 face value, 12% 10 year bonds on October 1, 2002 at 105. The bonds are dated October 1, 2002 and pay semiannual interest on April 1 and October 1. What is the interest expense to be reported for the year 2002?

Problem 2: The proceeds from a bond issued with detachable stock purchase warrants should be accounted for

a. Entirely as bonds payable

b. Entirely as stockholders' equity

c. Partially as unearned revenue and partially as bonds payable

d. Partially as stockholders' equity and partially as bonds payable

Reference no: EM132817148

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