question archive On July 1, 2018, Carr Company issued at 104, five thousand of 10% P1,000 face value bonds
On July 1, 2018, Carr Company issued at 104, five thousand of 10% P1,000 face value bonds
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On July 1, 2018, Carr Company issued at 104, five thousand of 10% P1,000 face value bonds. The bonds were issued through an underwriter to whom the entity paid bond issue cost of P125,000.
On July 1, 2018, what amount should be reported as bond liability?
a. 4,875,000
b. 5,075,000
c. 5,200,000
d. 5,325,000
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Answer:
b .
Step-by-Step explanation
5,000 of the P1,000 valued bonds issued at 104% is P5,200,000
P125,000 deducted from P5,200,000 is
P5,075,000
