On January 1, 2020, Miya Co. issued a 5% redeemable preference share with aggregate par

value of P3,000,000 for P2,800,000. Transaction cost incurred amounted to P212,173.65. The

shareholders can present the shares for redemption at anytime beginning January 1, 2022.

Based on Miya's past experience shares are usually redeemed after 5 years. The effective

interest rate is 3%. Provide for journal entries, amortization table and all necessary

computations.