Problem 4-1

1.)
GENERAL JOURNAL
Page Number
Date
01

2020 Descriptions PR Debit Credit

1-Apr Cash Php 7,420,000
Bonds Payable 7,000,000
Premiums on Bonds Payable 420,000

1-Oct Interest Expense 420,000

Cash 420,000

31-Dec Interest Expense 210,000

Interest Payable 210,000

Premiums on Bonds Payable 31,500

Interest Expense 31,500

GENERAL JOURNAL
Page Number
Date
01
2021 Descriptions PR Debit Credit
1-Jan Interest Payable Php 210,000
Interest Expense Php 210,000

1-Apr Interest Expense 420,000

Cash 420,000

1-Oct Interest Expense 420,000

Cash 420,000

31-Dec Interest Expense 210,000

Interest Payable 210,000

Premiums on Bonds Payable 42,000

Interest Expense 42,000

2.)
Non-Current Liabilities
 Bonds Payable Php 7,000,000
Premium on Bonds Payable 346,500
Php 7,346,500

Problem 4-2
GENERAL JOURNAL
Page Number
Date
01
2020 Descriptions PR Debit Credit
1-Jan Unissued Bonds Payable Php 8,000,000
Authorized Bonds Payable Php 8,000,000

Cash 4,750,000
Discount on Bonds Payable 250,000
Unissued Bonds Payable 5,000,000

30-Jun Interest Expense 300,000

Cash 300,000

31-Dec Interest Expense 3,000,000

Cash 3,000,000

Interest Expense 25,000

Discount on Bonds Payable 25,000

GENERAL JOURNAL
Page Number
Date
01
2021 Descriptions PR Debit Credit
30-Jun Interest Expense Php 300,000
Cash Php 300,000

1-Sep Cash 2,100,000

Unissued Bonds Payable 2,000,000
Premium on Bonds Payable 60,000
Interest Expense 40,000

31-Dec Interest Expense 420,000

Cash 420,000

Interest Expense 25,000

Discount on Bonds Payable 25,000
 Premium on Bonds Payable 2,400
Interest Expense 2,400

2.)
Non-Current Liabilities
Authorized Bonds Payable Php 8,000,000
Unused Bonds Payable (1,000,000)
Issued Bonds Payable 7,000,000
Premiums on Bonds Payable 57,600
Discount on Bonds Payable (200,000)
Php 6,857,600

Problem 4-3
1.)
Total Bonds Payable Issued Php 6,000,000
Face Value Bonds (3,000,000)
Bond Payable December 31,2020 Php 3,000,000

Discount on Bonds payable Php 300,000

Amortization from 2013 to 2019 (210,000)
Balance January 1, 2020 90,000
Discount applicable for bonds retired (45,000)
Adjusted Balance 45,000
Amortization for 2020 (15,000)
Discount on Bonds Payable December 31, 2020 Php 30,000

2.)
Interest Php 360,000
Amortization of Discount for 2020 15,000
Interest Expense for 2020 Php 375,000

3.)
Retained Earnings Php 210,000
Discount on Bonds Payable Php 210,000

Bonds Payable 300,000

Discount on Bonds Payable 45,000
Gain on Early Retirement of Bonds 255,000

Interest Expense 15,000

Discount on Bonds Payable 15,000

Interest Expense 180,000

Interest Payable 180,000