Face Value of Bonds P6,540,000

Issue Price: 112

Issuance Date: January 1, 2019

Stated Rate: 8%

Interest Payment: Annually, every December 31

Bond mature on every December 31 at the rate of P1,090,000

Maturing on December 31, 2023

Retired at 92 on December 31, 2019

1. Compute for the proceeds from the issuance of bonds on January 1, 2019

2. Compute for the premium amortization for the year 2020?

3. Compute for the unamortized premium attributable to the P1,090,000 face value retired.

4. Compute for the premium amortization to be recorded for the year 2020, after the retirement of bonds.