5. On January 1, 2023, Crown Asia Company purchased bonds with face amount of P5,000,000 The bonds are dated January 1, 2023 and mature on January 1, 2027. The interest on the bonds is 10% payable semi- annually June 30 and December 31. The bond effective interest rate is 8%. What is the present value of the bonds on acquisition date? (Round the present value factor to four decimal places) a. 4,676,640 b. 5,067,175 C. 5,250,000 d. 5,336,675

5. On January 1, 2023, Crown Asia Company purchased bonds with face amount of P5,000,000 The bonds are dated January 1, 2023 and mature on January 1, 2027. The interest on the bonds is 10% payable semi- annually June 30 and December 31. The bond effective interest rate is 8%. What is the present value of the bonds on acquisition date? (Round the present value factor to four decimal places) a. 4,676,640 b. 5,067,175 C. 5,250,000 d. 5,336,675

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 4EA: On January 1, 2018, Wawatosa Inc. issued 5-year bonds with a face value of $200,000 and a stated...

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