The following is an excerpt of Yuji Inc.'s trial balance as of December 31, 2020: 10% Notes payable - Bank, 5 years P3,000,000 12% Bonds payable, 5 years 5,000,000 9% Bonds payable, 3 years 2,000,000 Additional information a. The Notes payable - Bank which was dated April 1, 2016 pays interest annually every April 1. As of December 31, 2020, Yuji Inc. has the right to refinance the said loan by issuing Bonds the proceeds shall be used to settle the obligation. On March 1, 2021 the company issued P4,000,000 Bonds at face value and used one-half of the proceeds to settle thenotes on April 1, 2021. The balance of the maturing obligation was settled out of working capital. The 2020 financial statement were approved for issuance by the BOD on April 15, 2021, b. The 12% bonds payable was issued on January 1, 2019 when the prevailing market rate for bonds was at 10%. The company recorded the transaction as a debit to cash for the bond proceeds, credit to the bonds payable account at face value, charging any difference to C. interest expense. Interest on the bonds is payable annually every December 31. Interest payments were recorded to the appropriate interest expense account. d. The 9% bonds payable which were issued at P2,948,685, is a serial bonds dated January 1, 2020 and matures at P1,000,000 every December 31, starting 2020. Interest based on the outstanding balance of the bonds are paid annually every December 31. The prevailing market rate of interest on the issuance date was at 10%. The issuance was recorded as a| debit to cash for the proceeds, credit to bonds payable at face value with the difference being charged to interest expense. The first principal and interest collection was recorded correctly at the end of the year