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What amount should the bonds be initially recognized

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Pacito Corp. issued 10% bonds with face amount of P9,000,000 on June 1, 2020. The bond contract requires the face amount to be paid
in six equal semi-annual installments together with interest on the unpaid balance every November 30 and May 31 starting November
30, 2020. The effective interest rate on June 1, 2020 is 8%. (Round off present value factors to four decimal places)

Problem 1. At what amount should the bonds be initially recognized on June 1, 2020?

Problem 2. How much is the interest expense for the year 2021?

Problem 3. At what amount should the bonds be presented on December 31, 2021?

Reference no: EM132808259

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