Please help me At the beginning of current vear. Zamboanga CompanyIssued P8,000,000 of 12% bonds payable maturing in 5 years.he bonds pay interest semiannually on June 30 andProblem 7-3 (IFRS)December 3i.ght to purchase 16.000 P100 par value shares for P150 pershare within the next three years.hwarrants at the time of issuance was P1,500,000. Allshare warrants were exercised at current year-end.The market rate of interest for similar bonds without thewarrants is 10%. The PV of 1 at 5% for ten periods is .61, andThe PV of an ordinary annuity of 1 at 5% for ten periods is7.72.Required:Prepare journal entries for the currrent year in connection.with the bonds. The interest method of amortization is used.Problem 7-4 (IFRS)At the beginning of current year, Silay Company issued 2,000convertible bonds. The bonds have a three-year term andare issued at 110 with a face amount of P1,000 per bond,giving total proceeds of P2,200,000. Interest is payableannually in arrears at a nominal annual interest rate of 6%.Each bond is convertible at any time up to maturity into 25shares of capital with par value of P20. The bonds areconverted at the end of current year.When the bonds are issued, the prevailing market rate forsimilar bonds without conversion privilege is 9%.The present value of 1 at 9% for three periods is 0.77 andthe present value of an ordinary annuity of 1 at 9% for threeperiods is 2.53.Required:Prepare journal entry to record issuance of the bonds,interest pay ment, effective amortization and bondconversion,

Bonds issuance is one of the ways to raise funds by the companies. As a return, the investor will…

share warrants were exercised at current year-end. Problem 7-3 (IFRS) fae beginning of current year, Zamboanga Company Asued P8.000,000 of 12% bonds payable maturing in 5 years. De bonds pay interest semiannually on June 30 and December 31i. The bonds include share warrants giving the bondholder the to purchase 16.000 P100 par value shares for P150 per share within the next three years. he bonds and warrants were issued at 120. The value of the warrants at the tie of issuance was P1,500,000. Al The market rate of interest for similar bonds without the warrants is 10%. The PV of 1 at 5% for ten periods is .61, and The PV of an ordinary annuity of 1 at 5% for ten periods is 7.72. Required: Prepare journal entries for the currrent year in connection. with the bonds. The interest method of amortization is used.