1. On January 1, 2021, Monic Company decided to issue 5,000, 10 year bonds of 8%, P1,000 face value each with warrants to acquire share capital at P30 per share. The interest on the bonds is payable annually every December 31. Each bond contains one warrant which can be used to acquire 5 shares of P25 par value share capital. It is reliably determined that without warrants, the bonds would sell at 114.7 with a 6% effective yield. The bond price with warrants is 120. 1. The interest expense to be recognized in 2022 is: 2. If all the share warrants were exercised on July 1, 2021, the net increase in stockholders’ equity is: 3. The balance of the unamortized bond premium (discount) as of December 31, 2023 is:
1. On January 1, 2021, Monic Company decided to issue 5,000, 10 year bonds of 8%, P1,000 face value each with warrants to acquire share capital at P30 per share. The interest on the bonds is payable annually every December 31. Each bond contains one warrant which can be used to acquire 5 shares of P25 par value share capital. It is reliably determined that without warrants, the bonds would sell at 114.7 with a 6% effective yield. The
1. The interest expense to be recognized in 2022 is:
2. If all the share warrants were exercised on July 1, 2021, the net increase in
3. The balance of the unamortized bond premium (discount) as of December 31, 2023 is:
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