On January 1, 2019, HBBW Corporation issued 1,000 of its January 1, 2014, 8%, 10 year, P1,000 face value bonds with detachable stock warrants at P1,250,000. Each bond, which pays semi- annual interest every January 1 and July 1, carried 5 detachable warrants which entitle the holder to acquire one share of HBBW Corporation, P50 par, ordinary shares for every warrant at a specified option price of P55 per share. Immediately after the issuance, the prevailing market rate of the interest is at 10% and the market value of the warrants was P30. The company recorded the transaction by debiting cash and crediting bonds payable at the total cash consideration received. Interests paid during the period are charged to interest expense, while accrual is yet to be made at the end of the period. The present value of P1 at 10% for 5 periods is at The present value of P1 at 5% for 10 periods is at The present value of P1 at 10% ordinary annuity is at The present value of P1 at 5% ordinary annuity is at 0.6209 0.6139 3.7908 7.7217 1. What is the carrying value of the bonds that should be be presented in the statement of financial position on December 31, 2019? 2. Comparing the entries made by the company and your should be entries, prepare one compound entry to adjust the affected accounts in 2019 considering the books are still open in 2019? SAN Department Store sells gift certificates redeemable only when merchandise is purchased. These gift certificates have an expiration date of two years after issuance date. The unearned revenue account relating to gift certificates has a beginning balance of P65,000 and the sale of gift certificates during the year 2020 was likewise credited to this account. The balance of the unearned revenue account as at yearend totaled P300,000, before any adjustment for the recognition of revenue. You verified that during the year, P15,000 worth of gift certificates expired and the total of certificates that were redeemed was P200,000. 3. Compute for the correct balance of the account Unearned Revenue for Gift Certificates Outstanding as at December 31, 2020 On January 1, 2019, HBBW Corporation issued 1,000 of its January 1, 2014, 8%, 10 year, P1,000 face value bonds with detachable stock warrants at P1,250,000. Each bond, which pays semi- annual interest every January 1 and July 1, carried 5 detachable warrants which entitle the holder to acquire one share of HBBW Corporation, P50 par, ordinary shares for every warrant at a specified option price of P55 per share. Immediately after the issuance, the prevailing market rate of the interest is at 10% and the market value of the warrants was P30. The company recorded the transaction by debiting cash and crediting bonds payable at the total cash consideration received. Interests paid during the period are charged to interest expense, while accrual is yet to be made at the end of the period. The present value of P1 at 10% for 5 periods is at The present value of P1 at 5% for 10 periods is at The present value of P1 at 10% ordinary annuity is at The present value of P1 at 5% ordinary annuity is at 0.6209 0.6139 3.7908 7.7217 1. What is the carrying value of the bonds that should be be presented in the statement of financial position on December 31, 2019? 2. Comparing the entries made by the company and your should be entries, prepare one compound entry to adjust the affected accounts in 2019 considering the books are still open in 2019? SAN Department Store sells gift certificates redeemable only when merchandise is purchased. These gift certificates have an expiration date of two years after issuance date. The unearned revenue account relating to gift certificates has a beginning balance of P65,000 and the sale of gift certificates during the year 2020 was likewise credited to this account. The balance of the unearned revenue account as at yearend totaled P300,000, before any adjustment for the recognition of revenue. You verified that during the year, P15,000 worth of gift certificates expired and the total of certificates that were redeemed was P200,000. 3. Compute for the correct balance of the account Unearned Revenue for Gift Certificates Outstanding as at December 31, 2020