What the entry to record the july interest payment

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Problem 1: Electronics4U manufactures high-end whole home electronic systems. The company provides a one-year warranty for all products sold. The company estimates that the warranty cost is P200 per unit sold and reported a liability for estimated warranty costs P6.5 million at the beginning of this year. If during the current year, the company sold 50,000 units for a total of P243 million and paid warranty claims of P7,500,000 on current and prior year sales, what amount of liability would the company report on its statement of financial position at the end of the current year?

Problem 2: On January 1, 2017, Chang Company sold bonds with a face amount of P50,000,000 at 97, a yield of 11%. Interest is payable semiannually at 10% on July 1 and December 31. The entry to record the July 1, 2017 interest payment will include?

Reference no: EM132628339

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