problem 3 and 4

Problem 3: On January 1, 2016 Grader Company issued its 10%, 4 year convertible debt instrument with a face amount of Php 4,000,000 for Php 4,400,000. Interest is payable every December 31 of each year. The debt instrument is convertible into 35,000 ordinary shares with a par value of Php 100. When the debt instruments were issued, the prevailing market rate of interest for similar debt without conversion option is 8X (Carry PV factors up to 3 decimal places) Required: 3. How much of the total proceeds represents the equity component? 4. What is the balance of the unamortized premium on debt instrument as of December 31, 2016? Problem 4: The accumulated profits and losses of Gabby Company shows he following postings: Debit Stock Dividends Php 500,000 Uninsured fire loss 175,000 Prior year's errors 214,000 Reserved for bond redemption 300,000 Credit Beginning balance Php 1, 120,000 Net income for the year 760,000 Excess of par value 250,000 Gain on sale of treasury shares 150,000 Ending Balance Php 1,091,000 Required: 5. What is the balance in Accumulated Profits account to be reported in the company's yearoend financial statements