On January 1, 2021, Zschech Co. issued P4,000,000, 10%, five-year bonds payable. Interest is payable every December 31, and the bonds were issued to yield 12%. The bonds were dated January 1, 2021.

Suppose the bonds were issued on March 1, 2021. a. How much cash did Zschech receive upon the issuance of the bonds? b. Prepare the journal entry for the issuance of the bonds, and the payment of interest on December 31, 2021