Determine the carrying amount of the bonds as of December

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Q1. On June 1, 2020, Jefferson Controls, Inc. issued P12,000,000 of 10 percent bonds at P10,348,080. Interest is payable semiannually on May 31 and November 30. The bonds mature in 15 years. Jefferson Controls, Inc. is a calendar-year corporation. Determine the carrying amount of the bonds as of December 31, 2020.

Q2. Atimonan Company issued 8,000 of its 8%, 10-year P1,000 face value bonds with detachable share warrants at 120. Each bond carried a detachable warrant for two shares of Atimonan's P100 par value ordinary shares at a specified option price of P150. Immediately after issuance, the market value of the bonds ex-warrants was P8,100,000 and the market value of the warrants was P900,000. The issuance of the bonds increased Atimonan's equity by?

Reference no: EM132859088

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