1.

Issue price Present value factor

Principal ₱ 2,000,000 0.74621539661 ₱ 1,492,431
Interest 120,000 5.0756920678 609,083
Present value or issue price ₱ 2,101,514 Not required; this is to test the issue pr

Date Interest paid Interest expense Amortization Balance

1/1/2024 2,101,520
1/1/2024 6/30/2024 120,000 105,076 14,924 2,086,596
6/30/2024 12/31/2024 120,000 104,330 15,670 2,070,926
12/31/2024 6/30/2025 120,000 103,546 16,454 2,054,472
6/30/2025 12/31/2025 120,000 102,724 17,276 2,037,196
12/31/2025 6/30/2026 120,000 101,860 18,140 2,019,055
6/30/2026 12/31/2026 120,000 100,953 19,047 2,000,008
101,512
his is to test the issue price only
 At effective rate
Principal ₱ 5,000,000 0.854804191 ₱ 4,274,021
Interest 150,000 3.629895225 544,484
₱ 4,818,505 Not required; this is to test the issue pr

Interest
Date Interest paid expense Amortization Balance
1/1/2024 ₱4,818,500
6/30/2024 ₱ 150,000 ₱ 192,740 ₱ 42,740 4,861,240
12/31/2024 150,000 194,450 44,450 4,905,690 Carrying amount.12/31/2
6/30/2025 150,000 196,228 46,228 4,951,917
12/31/2025 150,000 198,077 48,077 4,999,994

Interest expense for 2024 ₱ 387,190

2024
Jan 1 Cash ₱ 4,818,500
Discount on bonds payable 181,500
Bonds payable ₱ 5,000,000

June 30 Interest expense 192,740

Discount on bonds payable 42,740
Cash 150,000

Dec 31 Interest expense 194,450

Discount on bonds payable 44,450
Cash 150,000
d; this is to test the issue price only

Carrying amount.12/31/2024
2024
March 1 Cash ₱ 7,948,500
Bonds payable ₱ 7,000,000
Premium on bonds payable 948,500

Sep 1 Interest expense 317,940

Premium on bonds payable 32,060
Cash 350,000

Dec 31 Interest expense 233,333

Accrued interest payable 233,333
Accrual of interest from 9/1 to 12/31

/ Premium on bonds payable 22,228

Interest expense 22,228
Amortization of premium from 9/1 to 12/31

2025
Jan 1 Accrued interest payable 233,333
Interest expense 233,333
Reversing entry

March 1 Interest expense 350,000

 Cash 350,000

/ Premium on bonds payable 11,114

Interest expense 11,114
Amortization of premium from 1/1 to 3/1

Sept 1 Interest expense 315,324

Premium on bonds payable 34,676
Cash 350,000

Dec 31 Interest expense 233,333

Accrued interest payable 233,333
Amortization of premium from 9/1 to 12/31

/ Premium on bonds payable 24,042

Interest expense 24,042
Amortization of premium from 9/1/2025 to 12/1/2025
 Effective rate
Principal ₱7,000,000 0.456 ₱ 3,192,000
Interest 350,000 13.590 4,756,500
₱ 7,948,500

Interest Interest
Date paid expense Amortization Balance

3/1/2024 ₱7,948,500
9/1/2024 ₱ 350,000 ₱ 317,940 ₱ 32,060 7,916,440
12/31/2024 22,228 7,894,212 Carrying amount at Decembe
3/1/2025 350,000 316,658 33,342 7,883,098
9/1/2025 350,000 315,324 34,676 7,848,422 Interest
3/1/2026 350,000 313,937 36,063 7,812,358 3/1/2024-9/1/2024
9/1/2026 350,000 312,494 37,506 7,774,853 9/1/2024-'12/31/202
3/1/2027 350,000 310,994 39,006 7,735,847 Interest expense for
9/1/2027 350,000 309,434 40,566 7,695,281
3/1/2028 350,000 307,811 42,189 7,653,092
9/1/2028 350,000 306,124 43,876 7,609,216
3/1/2029 350,000 304,369 45,631 7,563,584
9/1/2029 350,000 302,543 47,457 7,516,128
3/1/2030 350,000 300,645 49,355 7,466,773
9/1/2030 350,000 298,671 51,329 7,415,444
3/1/2031 350,000 296,618 53,382 7,362,061
9/1/2031 350,000 294,482 55,518 7,306,544
3/1/2032 350,000 292,262 57,738 7,248,806
9/1/2032 350,000 289,952 60,048 7,188,758
3/1/2033 350,000 287,550 62,450 7,126,308
9/1/2033 350,000 285,052 64,948 7,061,360
3/1/2034 350,000 282,454 67,546 6,993,815
6,185
ng amount at December 31, 2024

Interest
3/1/2024-9/1/2024 ₱ 317,940
9/1/2024-'12/31/2024 211,105
Interest expense for 2024 ₱ 529,045
Maturity date
12/31/2024
12.31.2025
12/31/2026

Date
1/1/2024
12/31/2024
12/31/2025
12/31/2026

2024
Jan 1

Dec 31

2025
Dec 31

2026
Dec 31

/
 Nominal rate At effective rate
Principal Interest paid Total PV Present value
₱ 2,000,000 ₱ 360,000 ₱ 2,360,000 0.93 ₱ 2,194,800
2,000,000 240,000 2,240,000 0.86 1,926,400
2,000,000 120,000 2,120,000 0.79 1,674,800
₱ 6,000,000 ₱ 5,796,000

Interest
Interest paid expense Amortization Principal Balance
₱ 5,796,000
₱ 360,000 ₱ 463,680 ₱ 103,680 ₱2,000,000 3,899,680
240,000 311,974 71,974 2,000,000 1,971,654
120,000 157,732 37,732 2,000,000 9,387

Cash 5,796,000
Discount on bonds payable 204,000
Bonds payable 6,000,000

Interest expense 463,680

Discount on bonds payable 103,680
Cash 360,000

Bonds payable 2,000,000

Cash 2,000,000

Interest expense 311,974

Discount on bonds payable 71,974
Cash 240,000

Bonds payable 2,000,000

Cash 2,000,000

Interest expense 148,346

Discount on bonds payable 28,346
Cash 120,000

Bonds payable 2,000,000

Cash 2,000,000