On January 1, 2020, Surigao Company issued bonds with face amount of P4,000,000 and stated interest rate of 12%. The interest is payable semiannually on June 30 and December 31. The bonds mature on every December 31 at the rate of P2,000,000 per year for 2 years. The prevailing market rate for the bonds is 8%. Present value of 1 at 4%

One period - 0.9615 Two periods - 0.9246 Three periods - 0.8990 Four periods - 0.8548 Required: 1. Compute the market price of the bonds on January 1, 2020. 2. Prepare a table of amortization using the effective interest method. 3. Prepare journal entries for 2020 and 2021.