On January 1, 2020, Stockholm Corporation issued an 8% bond at face among of P4,550,000...
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Accounting
On January 1, 2020, Stockholm Corporation issued an 8% bond at face among of P4,550,000 which will mature in four years. The bonds, which has an effective interest of 9%, were issued for P 4,402.593.00. Interest is payable annually on December 31. Required: Stokcholm uses the effective-interest method of amortizing bond discount or premium. Determine the following: 1. Interest expense for 2020 = 2. Carrying value of the bonds at December 31, 2020. =
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