On June 1, 2020, XYZ Company issued its 12% callable bonds in the face amount of P5,000,000 which matures on May 31, 2030. The market rate of the bonds is 9%. The interest payment date is on May 31 and November 30. XYZ Company uses the effective interest of amortizing discount and premium.

On April 30 2022, XYZ calls the entire issue at 99 and cancels it. 1. Compute for the issue price of the bonds. 2. Do an Amortization Table 3. Compute for the amount of interest expense recorded on the December 31, 2020 journal entry. 4. Compute for the carrying amount of the Bonds Payable on December 31, 2020. 5. Prepare the journal entries to record the payment of interest on April 30, 2022. 6. Prepare the journal entries to record the retirement of bonds on April 30, 2022.