NAME: _______________________ C/Y/S: __________ DATE: ______________

INSTRUCTIONS: IN A WORKSHEET, WRITE YOUR SOLUTIONS IN PROPER FORMAT, WITHOUT ERASURES.

5,000 debenture bonds with face value of ₱1,000 per bond was issued by Shawn Tukan on August 1, 2017, at an annual effective
rate of 11%. Annual interest is payable starting July 31, 2018 at an annual rate of 13%. The bonds have a maturity of 5 years. All
of the bonds were retired on October 1, 2020 with a gain on sale of ₱257,886.

Compute the following:

Interest expense in fiscal year ending December 31, 2019.
Noncurrent liability as of December 31, 2019.
Current liability as of December 31, 2019.
Retirement price.

Unsecured convertible bonds with a face value of ₱9,000,000 dated June 1, 2017 were issued by Shawn Tukan on August 1, 2017
at face value. The effective interest rate of the bonds without its conversion feature is 12% p.a.. Interest of 11% p.a. is payable
semiannually for 3 years. Half of the bonds were converted on October 31, 2019 into 45,000 shares at ₱60 par value per share.

Compute the following:

Share premium - conversion privilege as of December 31, 2017
Interest expense in 2018.
Carrying value of the bonds on December 31, 2018.
Current liability as of December 31, 2019.
Total credit to share premium upon exercise of conversion feature

5-year bonds with share warrants were issued by Shawn Tukan at ₱2,400,000 on January 1, 2017. The interest rate on the bonds
are payable every June 30 and December 31 at 13% interest p.a.. If the bonds were issued without warrants, the effective interest
rate is 14% p.a. After a bond issue cost were incurred as of issue date, the effective interest rate became 15.5%. On April 1, 2019,
500 bonds were retired at quoted price of 94.2. Face value of the bonds is ₱2,000,000.

Compute the following:

Bond issue cost as of January 1, 2017.
Equity component as of issue date
Carrying value of the bonds on January 1, 2017.
Interest expense in 2018
Gain or loss on the retirement of the bonds.

Serial bonds were issued by Shawn Tukan on January 1, 2017 and each ₱1,000,000 is due annually every December 31 plus 7%
p.a.. As of December 31, 2018, the bonds have a carrying value of ₱3,054,498. Effective interest rate is 6%. The first interest
paid on December 31, 2017 is ₱350,000.

Compute for the following:

Issue price
Interest expense in 2018.
Date of maturity