3: EXERCISES 1. On January 1, 20x1, Sixty Hours Co. issued 1,000, 12,000, P bonds for P1,903,927. Principal is due on December 31, 20 while interest is due annually every year-end. The effective interest rate is 12%. Requirement: Provide the journal entries over the life of the bonds 2. On January 1, 20x1, Faith Co. issued 1,000, P2,000, 12% bonds for P2,206,168. Principal is due on December 31, 2013, whe interest is due annually every year-end. Faith Co. incre transaction costs of P106,694 on the issuance. The effective interest rates are 8% before adjustment for transaction costs and 10% after adjustment for transaction cosis Requirement: Provide the journal entries over the life of the bonds. 3. On January 1, 20x1, Hope Co. issued 5-year, 12%, P2,000,00 bonds for P2,151,632. Principal is due at maturity, while interest is due annually every year-end. The effective interest rate is 10%. On July 1, 20x3, Hope Co. retired all the bonds at 102. The retirement price includes payment for the accrued interest. Requirement: Provide the entries on July 1, 20x3. PROBLEM 3: EXERCISES 1. On January 1, 20x1, Sixty Hours Co. issued 1,000, 12000, P. bonds for P1,903,927. Principal is due on December 31, 20 while interest is due annually every year-end. The effective interest rate is 12%. Requirement: Provide the journal entries over the life of the bonds 2. On January 1, 20x1, Faith Co. issued 1,000, P2,000, 12% bonds for P2,206,168. Principal is due on December 31, 2013, while interest is due annually every year-end. Faith Co. incured transaction costs of P106,694 on the issuance. The effective interest rates are 8% before adjustment for transaction costs and 10% after adjustment for transaction cos Requirement: Provide the journal entries over the life of the bonds