Carnation Company issued a P2,000,000 12% face value bonds, 10 years, on April 1, 20X2 for P1,964,600. The bonds are dated April 1, 20x2 with interest payable April 1 and October 1. Bond discount is amortized following scientific method. The effective interest rate is 12.40%. Required: a) Prepare entries related to the bonds for the years 20X2-20X4. b) What is the total amortization of discount for the year 20X4? c) How much is the interest expense for the year 20X2?

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