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Debenture Bonds and Partnership Liabilities

The document discusses a company that issued 10-year debenture bonds. It provides information about the interest payments and carrying value. It asks what the annual stated interest rate is for the bonds.

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salvadorphil42
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4 views1 page

Debenture Bonds and Partnership Liabilities

The document discusses a company that issued 10-year debenture bonds. It provides information about the interest payments and carrying value. It asks what the annual stated interest rate is for the bonds.

Uploaded by

salvadorphil42
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Paula Co. issued ten-year P2,000,000 debenture bonds on January 2, 2018.

The bonds pay


interest semiannually. The company uses the effective interest method to amortize bond
premium and discounts. The carrying value of the bonds on this date was P1,859,530. A
journal entry was recorded for the first interest payment on June 30, debiting interest expense
for P130,160 and crediting cash for P120,000. The annual stated interest rate for the
debenture bonds is ______________
A. 6% C. 12%
B. 7% D. 14%

and Z are partners in XYZ Partnership, Ltd. With Y as 1imited partner. After five years of
operations, the partnership incurred debtor in favor of third persons totaling P5 million. The
total partnership assets is P3M. Who among the partners shall be liable with their separate
property in favor of creditors:

X, Y, and Z for P1 million each.

X and Y for 1 million each.

X and Z for P1.5 million each because they were general partners.

X, Y and z depending upon their capital contribution.

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