Supersonic Company was authorized to issue P7, 000,000 face values, 12%, 10-years bonds on April 1, 2019. Interest on the bonds is payable semiannually on April 1 and October 1 of each year. The bonds...

Extracted text: Supersonic Company was authorized to issue P7, 000,000 face values, 12%, 10-years bonds on April 1, 2019. Interest on the bonds is payable semiannually on April 1 and October 1 of each year. The bonds were sold to underwriters on April 1, 2019 at 106. The entity amortizes discount or premium only at the end of the fiscal year, using the straight line method. Required: 1. Prepare the jourmal entries for 2019 and 2020 including adjustment at the end of each year. Use memorandum approach. 2. Present the bonds payable in the statement of financial position on December 31, 2020.