8. White Company issued P8,000,000 12% bonds on December 31, 2020 at 96. Interest is payable annually on December 31. Bond maturity December 31 2022 2023 2024 2025 2026 2027 1,000,000 1,000,000 1,000,000 1,000,000 2,000,000 2,000,000 8,000,000 Required: a. Prepare a schedule showing the annual amortization of the bond discount using the bond outstanding method. b. Prepare journal entries from 2020 to 2023. 9. Interlink Company was authorized to issue 10-year, 12% bonds with face amount of P8,000,000. The bonds are dated January 1, 2020, and interest is payable semiannually on June 30 and December 31. The bonds were sold as follows: January 1, 2020 September 1, 2021 Required: 5,000,000 at 95 2,000,000 at 103 plus accrued interest 1. Prepare journal entries relating to the bonds payable in 2020 and 2021. Straight line amortization is used, and unissued bonds payable account is set up. 2. Show how information relative to the bond issue will be reported in the statement of financial position prepared on December 31, 2021. 10. On January 1, 2020, Bishop Company issued 10% bonds dated January 1, 2020 with a face amount of P20,000,000. The bonds mature on December 31, 2029. For bonds of similar risk and maturity, the market yield is 12%. Interest is paid semiannually on June 30 and December 31. The PV of 1 at 6% for 20 periods is 0.3118 and the PV of an ordinary annuity of 1 at 6% for 20 periods is 11.47. Required: 1. Determine the price of the bonds on January 1, 2020. 2. Prepare the journal entry to record the bond issuance on January 1, 2020. 3. Prepare the journal entry to record interest expense on June 30, 2020 using the effective interest method. 4. Prepare the journal entry to record interest expense on December 31, 2020 using the effective interest method. 28