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10,11,12,13,14 please answer all i really beed answer for this 10. California, Inc. had outstanding 10%, P1 million face value, convertible bonds maturing on December
10,11,12,13,14 please answer all i really beed answer for this
10. California, Inc. had outstanding 10%, P1 million face value, convertible bonds maturing on December 31, 2014 on which interest is paid June 30 and December 31. After amortization through June 30, 2012, the unamortized balance in the bond discount account was P30,000. The share premium from bond conversion privilege had a balance of P50,000. On that date, all of these bonds were converted into 40,000 ordinary shares with P20 par value. At that time, each share of California ordinary share capital sells for P23. California incurred expenses of P10,000 in connection with the conversion. The conversion of the bonds to ordinary shares shall result to an increase in share premium by: * a. P160,000 b. P170,000 O c. P180,000 d. P210,000 11. Use the same information given in the preceding problem. Recording the conversion in accordance with current accounting standards, California should record gain on conversion of: * a. P60,000 b. P50,000 c. P40,000 O d. PO d. 12. On July 1, 2012, Madison Company received P1,032,880 for P1,000,000 7p face amount, 12% bonds, a price that yields 10%. Using the interest method of amortization, how much is the interest expense for the six months ended December 31, 2012? * a. P61,973 O b. P60,000 O c. P51,644 O d. P50,000 13. Use the same information given in the preceding problem. What is the bond carrying value at December 31, 2012?* a. P1,024,524 O b. P1,031,236 O c. P1,032,880 O d. P1,041,236 14. On January 1, 2012, London Company issued its 9% bonds in the face amount of P2.0 million which mature on January 1,2022. The bonds were issued for P1,878,000 to yield 10% resulting in a bond discount of P122,000. London Company uses the interest method of amortizing bond discount. Interest is payable annually on December 31. What is the carrying value of the bonds at December 31, 2012? a. P1,885,800 O b. P1,896,000 O c. P1,896,780 O d. P1,898,000
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