Problem 7-3 (IFRS) At the beginning of current year, Zamboanga Company issued P8,000,000 of 12% bonds payable maturing in 5 years. The bonds pay interest semiannually on June 30 and December 31 . The bonds included share warrants giving the bondholder the right to purchase 16,000 P100 par value shares for P150 per share within the next three years. The bonds and share warrants were issued at 120. The fair value of the share warrants at the time of issuance was P1,500,000. All share warrants were exercised at current year-end The market rate of interest for simular bonds without the share warrants is 10%. The PV of 1 at 5% for ten periods is 61 , and the PV of an ordinary annuity of 1 at 5% for ten periods is 7.72 . Required: Prepare journal entries for the current year in connection with the bonds. The interest method of amortization is used