On January 1, 2021, DEF Company issued a 9% bonds with face amount of P4,000,000, which mature on January 1, 2031. The bonds were issued for P3,756,000 to yield 10%, resulting in a bond discount of P244,000. The entity used the interest method of amortizing bond discount. Interest is payable annually on December 31.

1. On December 31, 2021, what is the balance of the discount on bonds payable?

2. what is the carrying amount of bond payable on December 31, 2021?

On January 1, 2021, GHI Company issued 10% bonds in the face amount of P5,000,000, which mature on January 1, 2031. The bonds were issued for P5,675,000 to yield 8%, resulting in bond premium of P675,000. The entity used the interest method of amortizing bond premium. Interest is payable annually on December 31.

1. On December 31, 2021, what is the balance of the premium on bonds payable?

2. What is the carrying amount of bonds payable on December 31, 2021?