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Aye Company is authorized to issue P5,000,000 of 6%, 10-year bonds dated July 1, 2021 with interest payments on June 30 and December 31. When

Aye Company is authorized to issue P5,000,000 of 6%, 10-year bonds dated July 1, 2021 with interest payments on June 30 and December 31. When the bonds are issued on November 1, 2021, the entity received cash of P5,150,000 including accrued interest.

What is the discount or premium from the issuance of the bonds?

50,000 bond premium

No bond premium and discount

150,000 bond premium

150,000 bond discount

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