Question number 1. On january 1 20x1 an entity issues bonds with face amount of P 5 000 000 for P 5 200 000. The bonds mature on December 31 20x3 and pay annual interest of 12%. The bonds can be converted into 10 000 ordinary shares of the entity with par value per share of P 200. On January 1 20x1 the bonds are selling at 101 without the conversion features. the effective interest rate on the bonds is 11.59%. All of the bonds are converted into ordinary shares on january 1 20x3.

A. What is the entry on january 1 20x1 to record the issuance of the convertible bonds?

B. what is the entry on january 1 20x3 to record thw conversation of the bonds?

Question number 2. On january 1 20x1 an entity issues bonds with face amount of P 5 000 000 for P 5 200 000. The bonds mature on December 31 20x3 and pay annual interest of 12%. The bonds can be converted into 10 000 ordinary shares of the entity with par value per share of P 200. On January 1 20x1 the bonds are selling at 101 without the conversion featires. the effective interest rate on the bonds is 11.59%. All of the bonds are converted into ordinary sgares on january 1 20x3. However, the entity retires the bonds on january 1 20x3 at a call premium of 200 000. without the conversion features, the bods are selling on thia date at 102.

A. What is the entry on janaury 1 20x3 to record the retirements of the bonds?

Question number 3. Use the following information for the next two questions:

On january 1 20x1 an entitu has oustanding note payable with carrying amount of P 1000 000. 1. On this date, the debtor agrees to receive equipment with historical cost of 1,800,000, accumulated depreciation of P 900,000 and fair Value of P 850,000 in full settlement of the note payable.

A. what is the gain or loss on the derecognition of note payable?

2. On this day, the debtor agrees to receive 10 000 shares of the entity with par value per share of P10 in full settlement of the note payable. the shares are currently selling at P75 per shares.

A. What is the gain or loss on the derecognition of the note payable. b. What is the entry to record the decognition of the note payable?