Superman Company was authorized to issue 12%, 10-year bonds with face amount ofP7,000,000 on April 1, 2020. Interest on the bonds is payable semiannually on April 1and October 1 of each year. The bonds were sold to underwriters on April 1, 2020 at 106.The entity amortizes discount or premium only at the end of the fiscal year, using thestraight line method.