1. On January 1, 2021, a company issued a 10% 5-year bonds with face value of P8,000,000....
Question:
1. On January 1, 2021, a company issued a 10% 5-year bonds with face value of P8,000,000. Interest is payable semi-annually every January 1 and July 1. The bonds were issued to yield 8%. How much is the carrying value of the bonds on December 31, 2021?
2. A company issued a P3,000,000, 6-year bonds dated January 1, 2021, with a stated interest rate of 11%. Interest on the bonds is payable annually every December 31 of each year. The company's bonds were sold to yield 14%. On May 1, 2022, the company retired P1,000,000 face value bonds at 101. How much is the gain or loss on retirement of bonds taken to profit or loss?
3. A company issued a P3 Million three-year non-interest-bearing note on January 1, 2021, for a piece of land. The note was payable in three equal annual installments every December 31 starting December 31, 2021. The cash prize equivalent of the land on January 1, 2021 was P2,401,800.
What is the balance of the discount on notes payable on December 31, 2021?