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How much is discount on bonds payable as of issuance date

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Question - On January 1, 2020 ABC Co. issued a 10% 3-Year Bond, P3,000,000 Convertible Bonds at face amount. Each P1000 Bond is convertible to 8 shares par value of P100 per share. Principal is due at maturity but interest is due annually at each year-end. On issuance date, the bonds were selling at yield to maturity market rate of 15% without the conversion option.

The Half of the Bonds were converted into equity on December 31, 2021 incurring P50,000 Transaction Cost. While the remaining half where retired. The prevailing interest rate for a similar debt instrument without conversion feature is 12%.

Required -

How much is the Discount on Bonds Payable as of Issuance date?

What is the Carrying Amount of the Bond as of December 31, 2020?

How much would be the Total Share Premium upon Conversion of the Bonds?

How much is the GAIN or (LOSS) on extinguishment of BONDS upon Retirement?

Reference no: EM132836676

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