A 12% P4,500,000 face value bonds was dated and issued on january 1, 2019 at 95. Bonds mature every december 31 of each year at the rate of P500,000 for 2020 and P1,000,000 per year for the succeeding years. On December 31, 2022, bonds with face value bonds of P1,000,000 which was originally maturing on December 31, 2024 are retired at 110.

1. Compute for the carrying amount as of December 31, 2019.

2. Bonds Outstanding for 2020.

3. Interest Expense for 2021.

4. Gain or Loss on the retirement of bonds

5. Compute for the premium/discount amortization for 2023 at retirement of bonds.

Answer rating: 100% (QA)

1 Compute for the carrying amount as of December 31 2019 Carrying amount PV of future payments Is... View the full answer