A. On January 1, 2021, Matthew Company issued its 10,000,000; 10-year, 8% bonds at par. Interests are payable every December 31.

1. Initial measurement of the bonds
2. Interest expense to be reported in the 2021 income statement is
3. Carrying value of the bonds at December 31, 2021

B. On January 1, 2021, Mark Company issued its 9%, P2,000,000 face value bonds at a discount. The yield rate of the 5 year term bonds that pays interest every December 31 was 12%

4. Initial measurement of the bonds

5. Interest expense to be reported in the 2021 income statement is

6. Discount amortization for 2021 is

7. Carrying value of the bonds at December 31, 2021