On March 1, 2020, Pyramid Company issued 10% bonds with face amount of P7,000,000 to yield 8%. Interest is payable semiannually on March 1 and September 1. The bonds mature in 10 years. The entity follows the calendar year.

Required:
1. Determine the market price or issue price of the bonds.
2. Prepare an effective interest amortization table for the first two interest periods.
3. Prepare journal entries for 2020.