P-3***On January 1,2011, RON Company issued 12% P3,000,000 face value bonds for P3,106,380, a price to yield 10%. The bonds mature on December 31, 2012. Interest is paid semi-annually on June 30 and December 31.

Required:

6. Journal entries for 2011 and 2012

7. Calculate the following: Year-end 12/31/2011 Year-end 12/31/2012

Amortization of premium _________________ _______________

Interest expense ________________ ________________

Carrying amount of bonds _________________ _____________