On January 1, 2020, Flexible Company acquired for P 1,1,50,000 the entire P 1,000,000 12% bond issue of another entity to be held as financial asset at amortized cost. Bonds of P 200,000 mature at...

Extracted text: On January 1, 2020, Flexible Company acquired for P 1,1,50,000 the entire P 1,000,000 12% bond issue of another entity to be held as financial asset at amortized cost. Bonds of P 200,000 mature at annual interval beginning December 31, 2020. Interest is payable semi-annually on June 30 and December 31. REQUIRED: 1. Prepare the schedule of amortization following the bond outstanding method. 2. Prepare journal entries for 2020, and 2021