PROBLEM 6 - 16 and 17 PLEASE WITH SOLUTION PLEASE

Problem 6-16 (AICPA Adapted) On January 1, 2020, Ward Company issued 9% bonds with face amount of P4,000,000, which mature on January 1, 2030 The bonds were issued for P3,756,000 to yield 10%, resulting The entity used the interest method of amortizing bond discount. Interest is payable annually on December 31. 1. On December 31, 2020, what is the balance of the discount in bond discount of P244,000. on bonds payable? a. 228,400 b. 208,000 c. 206,440 d. 204,000 2. What is the carrying amount of bonds payable on December 31, 20202 a. 3,756,000 b. 4,000,000 c. 3,771,600 d. 3,740,400 Problem 6-17 (AICPA Adapted) On January 1, 2020, Wolf Company issued 10% bonds in the face amount of P5,000,000, which mature on January 1, 2030. The bonds were issued for P5,675,000 to yield 8%, resulting in bond premium of P675,000. The entity used the interest method of amortizing bond premium. Interest is payable annually on December 31. 1. On December 31, 2020, what is the balance of the premium on bonds payable? a. 675,000 b. 629,000 c. 607,500 d. 507,500 2. What is the carrying amount of bonds payable on December 31, 2020? a. 5,000,000 b. 5,629,000 c. 4,371,000 d. 5,675,000 231