How much is the premium or discount upon issuance

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Q1) On January 1, 2011, Mormont Company issued 9% bonds in the face amount of P2,500,000 which mature on January 1, 2021. The bonds were issued to yield 10%. Interest is paid every July 1 and Dec 31. How much is the premium or discount upon issuance?

Q2) On January 1, 2015, Tyrion Company issued P4,000,000 maturity value, 12% bonds for P4,000,000 cash. The bonds are dated December 31, 2014 and mature on December 31, 2024. Interest will be paid semiannually on July 1 and January 1. What is the amount of total liability to be reported in the September 30, 2015 statement of financial position?

Reference no: EM133180565

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