1. On March 31, 2016, Buliling Company issued at 101 plus accrued interest 2,000 of 8% P1,000 face value bonds.

The bonds are dated January 1, 2016 and mature on January 1, 2026 and pay interest on January 1 and July 1. The
entity paid bond issue cost of P70,000.
From the bond issuance, what is the net cash received?

2. Bookba Company has the following information;

1. The November 30 bank statement balance included service charges of P2,000.
2. The November 30 cash balance in the general ledger was P244,500.
3. Outstanding checks on November 30 were P63,000 while undeposited receipts were P36,000
4. The bank service charges as shown in the bank statement totalled P3,000.
5. The December 31 cash balance in the general ledger was P319,750, which recognized P482,750 for
December receipts and P405,500 for checks written during December. In transit to the bank were receipts of
P28,750. Checks of P15,000 written prior to December and checks of P60,500 written in December had not
yet cleared the bank.
What is the bank balance on December 31?

3. Witt Company reported the following liability account balances on December 31, 2015:
6% note payable issued October 1, 2014 maturing October 1, 2016 400,000
8% note payable issued April 1, 2014 maturing April 1, 2016 300,000

The 2015 financial statements were issued on March 31, 2016. On March 1, 2016, the entire P 800,000 balance
of 8% note was refinanced by issuance of a long-term obligation payable lump sum. On December 31, 2015,
what amount of the notes payable should be classified as current?

4. Dana Company had P 5,000,000 note payable due on June 30, 2016. Under the existing loan facility, the entity had
the discretion to refinance or roll over the note payable for at least twelve months after the end of reporting period.
On December 31, 2015, what amount of the note payable should be reported as noncurrent liability?

5. On January 31, 2015, Beau Company issued P 3,000,000 maturity value, 12% bonds for P 3,000,000 cash. The
bonds are dated December 31, 2014, and mature on December 31, 2024. Interest will be paid semi annually on
June 30 and December 31. What amount of accrued interest payable should e reported on September 30, 2015?

6. On January 1, 2015, West Company issued 9% bonds in the amount of P 5,000,000, which mature on January 1,
2025. The bonds were issued for P 4,695,000 to yield 10%. Interest is payable annually on December 31. The
entity used the interest method. What is the carrying amount of the bonds payable on December 31, 2015?

7. Mann Company reported a 12% note payable of P 4,800,000 on June 30, 2014. The note is dated October 1, 2013
and payable in two equal annual payments of P 2,400,000 plus interest. The first interest and principal payment
was made on October 1, 2014. On June 30, 2015, what amount should be reported as accrued interest payable for
this note?

8. On September 30, 2015, World Company borrowed P 2,000,000 on a 8% note payable. The entity paid the first of
four quarterly payments of P 470,000 when due on December 30, 2015. On December 31, 2015, what amount
should be reported as note payable?

9. During 2015, Mann Company experience financial difficulties and is likely to default on a P 5,000,000, 10% three-
year note dated January 1, 2013 payable to Summit Bank. On December 31, 2015, the bank agreed to settle the
note and unpaid interest of P 500,000 for P 4,500,000 cash payable on January 31, 2016.
What amount should be reported as gain from extinguishment of debt in the 2015 income statement?