On March 1 2017 Jericho Company issued 5000 of its P1000 face value bonds at

On march 1 2017 jericho company issued 5000 of its

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1. On March 1, 2017, Jericho Company issued 5,000 of its P1,000 face value bonds at 110 plus accrued interest. Jericho Company paid bond issue cost of P100,000. The bonds were dated November 1, 2016, mature on No-vember 1, 2027, and bear interest at 12% payable semiannually on November 1 and May 1. What is the net amount received by Jericho from the bond issuance? a. 5,500,000 b. 5,700,000 c. 5,600,000 d. 6,000,000 2. On January 1, 2017, Gears Company issued 10,000 of its 12%, P1,000 face value bonds for P10,600,000, in-cluding accrued interest. The bonds are dated October 1, 2016, mature on October 1, 2023 and pay interest annually on October 1. The bonds were issued through an underwriter to whom Gears paid bond issue cost of P150,000. On January 1 2017, what should Gears report as bonds payable? 3 On January 1, 2017, Cool Company issued eight-year bonds with a face value of P500,000 and a stated inter-est rate of 6%, payable semiannually on June 30 and December 31. The bonds were sold to yield 8%. Table values are: Present value of 1 for 8 periods at 6% ....................................................627 Present value of 1 for 8 periods at 8% ....................................................540 Present value of 1 for 16 periods at 3% ..................................................623 Present value of 1 for 16 periods at 4% ..................................................534 Present value of annuity for 8 periods at 6% .........................................6.210 Present value of annuity for 8 periods at 8% .........................................5.747 Present value of annuity for 16 periods at 3% .......................................12.561 Present value of annuity for 16 periods at 4% .......................................11.652 1 The present value of the principal is 2. The present value of the interest is 3. The issue price of the bonds is a. 441,780 c. 444,780 b. 442,410 d. 499,800 4. On January 1, 2017, Lucian Company issued 9% bonds in the amount of P5,000,000 which mature on January 1, 2027. The bonds were issued for P4,800,000 but Lucian had to pay for a P107,000 bond issuance cost. The effective rate determined by Lucian is 10%. Interest is payable annually on December 31. Lucian uses the in-terest method of amortizing bond discount. In its December 31, 2017 statement of financial position, what amount should Lucian report as bonds payable? 5. On January 1, 2017, Christian Company issued its 5-year, 5,000, 8% bonds that will mature on December 31, 2021 and pay interest annually at 110. Christian however had to incur P80,000 of bond issue cost. The effec-tive rate on the same date was 6%. If Christian uses the effective interest method of amortization, what is the carrying amount of this bonds payable on December 31, 2017
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PAGE 66. On June 30, 2017, Maury Company had outstanding 12%, P5,000,000 face value bonds maturing on June 30, 2022. Interest was payable semiannually every June 30 and December 31. On June 30, 2017, after amortiza-tionwas recorded for the period, the unamortized bond discount and bond issue costs were P500,000 and P300,000, respectively. On that date, Maury acquired all its outstanding bonds on the open market at 96 and retired them. At June 30, 2017, what amount should Maury recognize as loss before income tax on redemption of bonds?
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