question archive On January 1, 2018, Carrow Company issued 10% bonds in the face amount of P1,000,000 that mature on January 1, 2028
On January 1, 2018, Carrow Company issued 10% bonds in the face amount of P1,000,000 that mature on January 1, 2028
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On January 1, 2018, Carrow Company issued 10% bonds in the face amount of P1,000,000 that mature on January 1, 2028.
The bonds were issued for P886,000 to yield 12%, resulting in bond discount of P114,000.
The entity used the interest method of amortizing bond discount. Interest is payable on January 1 and July 1.
For the year ended December 31, 2018, what amount should be reported as bond interest expense?
a. 106,510
b. 100,000
c. 53,160
d. 50,000
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