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What is the total and net effect of the transactions

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Problem - On October 1, 2020, Honesty Company purchased a 10%, P6,000,000 face amount bond issue for P 5,558,395 excluding accrued Interest to be held as financial asset at amortized cost. The bonds provide an effective yield of 12% and pays interest semiannually on February 1 and August 1. The entity used the effective interest method of amortization and appropriately recorded the bonds as financial asset at amortized cost. On August 1, 2022 the bonds were sold for 98. What is the total/net effect of the above transactions to the 2022 income statement?

Reference no: EM132946492

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