On Janury 1, 20x1, an entity issues bonds with face amount of P8,000,000 for P8,600,000. The bonds mature on December 31, 20x4 and pay annual interest of 11% every December 31. The entity incurs transactions costs of P81,645. The effective interest rate adjusted for transaction costs is 9%.    Requirement:  Prepare all the journal entries during the term of the bonds.   Other Given values:  Initial carrying amount of bonds = P8,518,355 Net premium from the issuance on initial recognition = P518,355 Periodic interest payment = P880,000 periodic interest expense = P766,382

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