Reference no: EM132912717

You gathered the following liability and equity account balances of JENDEUKIE INC. as of December 31, 2020:

11% bonds payable, at face value 10,000,000

Premium on bonds payable 704,706

Share capital 16,000,000

Share premium 4,590,000

Retained earnings 4,930,00

Treasury shares, at cost 650,000

Transactions during 2021 and other information relating to the Corporation's liability and equity accounts were as follows:

a. The bonds were issued on December 31, 2018, for P10,756,000 to yield 10%. The bonds mature on December 31, 2033. Interest is payable annually on December 31. The Corporation uses the effective interest method to amortize.

b. At December 31, 2020, the Corporation had 4,000,000, P10 par, authorized ordinary shares.

c. On January 15, 2021, the Corporation reissued 30,000 of its 50,000 treasury shares for P550,000. The treasury shares had been acquired on February 28, 2020.

d. On November 2, 2021, JENDEUKIE borrowed P8,000,000 at 9%, evidenced by a note payable to YG Bank. The note is payable in five equal installments of P1,600,000. The first principal and interest payment are due on November 2, 2022.

e. On December 31, 2021, JENDEUKIE owned 20,000 ordinary shares of ONION JENNIE Corp. which represented a 1% ownership interest. JENDEUKIE accounts for this as FA at FVOCI. The shares were purchased on May 4, 2020, at P20 per share. The market price was P21 per share on December 31, 2020, and P18 per share on December 31, 2021.

Based on the above, answer the following questions:

Problem 1. Carrying amount of the bonds payable on December 31, 2021?

Problem 2. Noncurrent portion of the note payable to bank as of December 31, 2021?

Problem 3. 2021 total interest expense?