Reference no: EM132835317

Question 1. What is the carrying amount of bonds payable as of December 31, 2010?

Question 2. What is the current liabilities as of December 31, 2010?

Question 3. What is the non-current liabilities as of December 31, 2010?

Question 4. What is the interest expense for the year ended December 31, 2010?

The following information relates to the obligations of oy Corporation as of December 31, 2010.

1. Accounts payable for goods and services on open account amounted to P35,000 at December 31, 2010.
2. On December 15, 2010, Joy declared a cash dividend of P.05 per share, payable on January 12, 2011, to shareholders of record as of December 31, 2010. Joy had 1 million ordinary shares issued and outstanding.
3. On December 31, 2010, Joy entered into a six-year finance lease on a warehouse and made the first annual lease payment of P100,000. The incremental borrowing rate was 12% and the interest rate implicit in the lease, which was known to Joy, was 10%. The rounded present value factors for an annuity due for six years are 4.6 at 12% and 4.8 at 10%.
4. On July 1, 2010, Joy issued P500,000, 8% bonds for P440,000 to yield 10%. The bonds pay interest annually every June 30. At December 31, 2010, the bonds were trading on the open market at 86 to yield 12%. Joy uses the effective interest method.
5. Joy's 2010 accounting profit was P850,000 and its taxable profit was P600,000. The difference is due to P100,000 permanent differences and P150,000 of temporary differences related to noncurrent assets. At December 31, 2010, Joy had cumulative taxable difference of P300,000 related to non-current assets. Joy's effective tax rate is 30%. Joy made no estimated tax payments during the year.