1. On January 1, 20x1, Athena Co. acquired P1,000,000 face amount, 14% bonds for P1,060,747. The bonds mature in four years' time but interest is due annually every January 1. The bonds are measured at amortized cost. The effective interest rate is 12%. . Assume all the bonds were sold on July 1, 20x3 at 98. Transaction costs incurred on the sale amounted to P38,000. How much is the gain or loss on the sale? What is the journal entry