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A company issued a P3,000,000, 6-year bonds dated January 1, 2021, with a stated interest rate of 11%. Interest on the bonds is payable annually every December 31 of each year. The company's bonds were sold to yield 14%. On May 1, 2022, the company retired P 1,000,000 face value bonds at 101. How much is the carrying value of the bonds on December 31, 2022? A company sells washing machines that carry a three-year warranty against manufacturer's defects. Based on company experience, warranty costs were estimated at P300 per machine. During 2021, Bill sold 24,000 washing machines and paid warranty costs of P1,700,000. In its profit or loss statement for the year ended December 31, 2021, the company should report warranty expense of

A company issued a P3,000,000, 6-year bonds dated January 1, 2021, with a stated interest rate of 11%. Interest on the bonds is payable annually every December 31 of each year. The company's bonds were sold to yield 14%. On May 1, 2022, the company retired P 1,000,000 face value bonds at 101. How much is the carrying value of the bonds on December 31, 2022? A company sells washing machines that carry a three-year warranty against manufacturer's defects. Based on company experience, warranty costs were estimated at P300 per machine. During 2021, Bill sold 24,000 washing machines and paid warranty costs of P1,700,000. In its profit or loss statement for the year ended December 31, 2021, the company should report warranty expense of

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter9: Long-term Liabilities
Section: Chapter Questions
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58. A company issued a P3,000,000, 6-year bonds dated January 1, 2021, with a stated interest rate of 11%. Interest on the bonds is payable annually every December 31 of each year. The company's bonds were sold to yield 14%. On May 1, 2022, the company retired P 1,000,000 face value bonds at 101. How much is the carrying value of the bonds on December 31, 2022? A company sells washing machines that carry a three-year warranty against manufacturer's defects. Based on company experience, warranty costs were estimated at P300 per machine. During 2021, Bill sold 24,000 washing machines and paid warranty costs of P1,700,000. In its profit or loss statement for the year ended December 31, 2021, the company should report warranty expense of
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