On January 1, 2021, Relay Company issued a 3-year, 12% bonds with face value of P3,000,000. Interest is payable annually every December 31 of each year starting December 31, 2021. The effective rate of interest on January 1, 2021 is 18%. PV of P1 @ 18% for 3 per................... 0.6086 PV of an ordinary annuity of P1@ 18% for 3 periods... 2.1743 At what amount shall the bonds be initially recognized of January 1, 2021? O P2,044,896 O P3,000,000 O P2,483,088 O P2,608,548

On January 1, 2021, Relay Company issued a 3-year, 12% bonds with face value of P3,000,000. Interest is payable annually every December 31 of each year starting December 31, 2021. The effective rate of interest on January 1, 2021 is 18%. PV of P1 @ 18% for 3 per................... 0.6086 PV of an ordinary annuity of P1@ 18% for 3 periods... 2.1743 At what amount shall the bonds be initially recognized of January 1, 2021? O P2,044,896 O P3,000,000 O P2,483,088 O P2,608,548

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 13Q: A company issued bonds with a $100,000 face value, a 5-year term, a stated rate of 6%, and a market...

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