What is the carrying amount of the bonds payable

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Problem - At the beginning of the current year, Cacai Company issued P5,000,000.00 of 12% nonconvertible bonds payable at 103 which are due in 5 years In addition, each P1,000 bond was issued with 30 detachable share warrants, each of which entitled the bondholder to purchase, for P50, one ordinary share of Cacai company, par value P25. On the date of issuance, the quoted market value of each warrant was P4. The market value of the bond ex-warrants at the time of issuance is 95.

Required -

1. What is the carrying amount of the bonds payable on the date of issuance?

2. What amount is credited to share premium if all shares are exercised?

Reference no: EM132848685

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