1. On January 1, 2011, Taguig Company issued 3-year bonds with face value of P5,000,00O at 99. The nominal rate is 10% and the interest is payable annually on December 31. Additionally, Taguig Company...

Extracted text: 1. On January 1, 2011, Taguig Company issued 3-year bonds with face value of P5,000,00O at 99. The nominal rate is 10% and the interest is payable annually on December 31. Additionally, Taguig Company paid bond issue cost of P150,000. What is the effective rate that should be used for these bonds? Round off present value factors to FOUR DECIMAL PLACES and the effective rate to two decimal places (e.g., 15.17%). * Your answer


Extracted text: 2. Using the information in Problem 1, how much should Taguig Company recognize as interest expense for 2011 using the effective interest method? Your answer 3. Using the information in Problem 1, what is the bonds' amortized cost at December 31, 2011? * Your answer