open to all accounting students

and to my blockmates or whatever.

and if you can help me answer it then please do so. thanks.


1. Year-ender Corporation issued P4,000,000 10% (market rate), three-
year bonds on March 1, 2007. Semi annual interests are paid on March
1 and September 1. Provide the pertinent entries in the books of the
issuing company: (a) IF stated rate is 9%; (b) IF stated rate is 11%.

2. On December 1, 2007, Paputok Corporation purchased bonds
(Principal = P6,000,000; stated rate = 8%). The bonds pay semiannual
interest every February 1 and August 1. (A) Provide the pertinent
entries in the books of Paputok Corp IF market rate is 10%. (B) How
much is the interest expense for 2007?

3. On December 31, 2007, Leap Year Corporation issued 5-year
P3,000,000 bonds at a market rate of 10%. The nominal rate was 8%.
Bonds pay interest every January 1. (A) Provide the pertinent entries
in the books of the debtor and creditor. (B) What is the carrying
amount of the bond on December 31, 2010? (C) How much is the interest
expense for 2011? (D) How much is the total cash payment (for
interest) for 2011?

4. On May 1, 2007, Fireworks Corporation issued three-year,
P5,000,000 bonds at a market rate of 8%. Semiannual stated rate was
5%. The bonds pay semiannual interest every January 1 and July 1. How
much is the balance of the unamortized discount/premium on December
31, 2008? (Indicate if discount or premium).