1. On January 1, 2020, Sweet Company purchased 5-year bonds with face value of P8,000,000 and stated interest of 10% per year payable semi-annually January 1 and July 1. The bonds payable acquired to yield 8&. What is the purchase price of the bonds? (PVF 4 decimal points). 2. On January 1, 2020, Chespin Co. issued 3-year bonds with a face value of P1,200,000 and stated interest of 8% per year payable annually on December 31. The bonds were acquired to yield 10%. The bonds were appropriately classified as financial liability at amortized cost. How much is the issue price of the bonds January 1, 2020? (PVF 4 decimal points). 3. How much is the interest expense for 2020? 4. On January 1, 2020, Pharaoh Company issued 3-year bonds with a face value P1,200,000 and stated interest of 8% per year. The bonds mature in 3 equal annual installments every December 31. The interest is also payable every December 31. The bonds acquired to yield 10%. The bonds were appropriately classified as financial liability at amortized cost. How much is the issue price of binds on January 1, 2020? (PVF 4 decimal points). 5. How much is the interest expense for 2020? 6. On January 1, 2020, when the market rate for bonds interest was 12%. Black Corporation issued P10 million face amount of bonds with interest to be paid semi-annually at a 10% annual rate every June 30 and December 31. The bonds mature on December 31, 2029 and were issued at a discount of P1,145,000. How much is the increase in the carrying amount of the bond liability from January 1 to June 30, 2020? 7. Brooke Company issued P6,000,000, 11%, 10-year bonds on March 31, 2020 when the market interest was 10%. The bonds are priced at 106.25. The bonds pay interest on May 31 and November 30. What is the carrying amount to the bond on December 31, 2020 statement of financial position? 8. What is the total interest expense that Brooke Company will record the year 2020? 9. The 12% bonds payable of Nyman Company had a carrying amount of P832,000 on December 31, 2021. The bonds, which had a face value of P800,000, were issued at a premium to yield 10%. Nyman uses the effective-interest method of amortization. Interest is paid on June 30 and December 31. On June 30, 2022, several years before their maturity, Nyman retired the bonds at 104 plus accrued interest. The loss on retirement is: 10. Yankee, Inc. is being sued for illness caused to local residents as a result of negligence on the company's part in permitting the local residents to be exposed to highly toxic chemicals from its plant. Yankee's lawyer states that it is probable that Yankee will lose the suit and found liable for a judgement costing Yankee anywhere from P400,000 to P2,000,000. However, the lawyer states that the best estimate of the expenditure required to settle the obligation is P1,200,000. As a result of the foregoing facts, Yankee should accrue a provision amounting to: 11. During 2020, Fernando Company became involved in a tax dispute with the BIR. On December 31, 2020, the tax advisor believed that an unfavorable outcome was probable. A reasonable estimate of additional tax was P500,000 but could be as much as P750,000. After the 2020 financial statements were issues, the entity received and accepted a BIR settlement offer of P650,000. What amount of accrued liability should be reported on December 31, 2020? 12. Aljur Company is involved in litigation regarding a faulty product sold in a prior year. The entity consulted with an attorney and determined that there is a 50% chance of losing. The attorney estimated that the amount of any payment would be between P500,000 and P800,000 with P500,000 as the best estimate. What amount of accrued liability should be reported? 13. Popo Company pays its outside salesperson fixed monthly salaries and commissions based on net sales. Sales commissions are computed and paid on a monthly basis (in the month following the month of sale) and the fixed salaries are treated as advances against commissions. However, if the fixed salaries for salespersons exceed their sales commissions earned for a month, such excess is not charged back to them. Pertinent data for the month of December for the three salespersons are as follows: Salesperson Fixed Salaries Net Sales Commissions Rate A 2,500 100,000 5% B 3,500 200,000 3% C 4,500 300,000 3% Totals 10,500 600,000 14. Use the following for the next four questions: Cincinnati Company has a contract with its CEO to pay him a bonus during each of the year 2020-2023. The profit before deductions for bonus and income taxes were P9,000,000 in 2020; P10,500,000 in 2021; P13,500,000 in 2022; and P24,000,000 in 2023. The bonus of 15% is deductible for a tax purposes in each year. The tax rate is 30%. The 2020 bonus is based on profit before bonus and taxes 15. The 2021 bonus is based on profit after bonus but before taxes 16. The 2022 bonus is based on profit before bonus but after taxes 17. The 2023 bonus is based on profit after bonus and taxes