1. On January 1, 2020, Ribond issued a 5-year 12%, P10,000,000 with detachable share warrants. Each P2000 bond is attached with 3 warrants. Interest is payable annually every January 1. The yield rate similar bonds with equity components is 15%. The bonds were selling for P11,597,084, ex-warrants, which will yield 8% interest.

The bondholders can purchase 1, P180 par value, ordinary share for P250, for every 2 warrants surrendered.

On April 27, 2023, 1,500 bondholders exercised their right to purchase ordinary shares.

What is the net increase in equity on date of exercise?

2.

On November 1, 2020, BCareful issued a 3-year, 7% P1,000,000 convertible bond at 105. The bonds were selling at P923,865, without the conversion feature, that yields a 10% interest. Transaction costs incurred in relation to the bond issuance amounted to P90,694, immediately after the BIC the bond yield was 14%. The interest on the bonds were payable semi-annually every April 30 and October 31. Each P500 peso bond is convertible into 3 ordinary shares. On October 31, 2022, there were bondholders who exercised their option, the bonds were converted into 3,000 ordinary shares. The ordinary shares have a par value of P50 and a market value of P70 at conversion date.

1. How much is the credit to share premium during conversion date?
2. How much is the amortization for 2022?

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