1. Good Company has an overdue notes payable of P1,500,000 to… 1. Good Company has an overdue notes payable of P1,500,000 to Better Company. Accrued interest on the notes amounts to P150,000. Good entered into an agreement with Better Company to exchange equity securities in settlement for the debt. Good Company is issuing 20,000 shares of its P50 par value ordinary shares. The ordinary shares is currently selling at P65. How much is the gain on debt restructuring?a. P0b. P250,000c. P350,000d. P650,000 2. The December 31, 2021, statement of financial position of Bordeaux Corporation includes the following items: 9% bonds payable due December 31, 2028 P3,081,000 The bonds were issued on December 31, 2018, and have a face amount of P3,000,000 with interest payable semi-annually on July 1 and December 31 of each year. On January 1, 2022, Bordeaux retired P1,000,000 of these bonds at 98. What amount should Bordeaux report on the company’s 2022 income statement as gain or loss on the retirement of the bonds? a. P21,000 gainb. P7,000 lossc. P47,000 gaind. P141,000 loss 3. On October 1, 2021, Best Company purchased as debt investments at fair value through profit or loss, P100,000, 14% bonds for 99 plus accrued interest and broker’s fees. Interest is paid semi-annually on February 1 and August 1. What amount of interest revenue did Best Company report for the year ended Dec. 31, 2021?a. P0b. P3,465c. P3,483d. P3,500 NOTE: please show your solution thank youBusiness Accounting ACCOUNTAN 101
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