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  3. 2. on february 1, 2020, gates company issued a p3,

2. On February 1, 2020, Gates Company issued a P3,000,000 of 12% bonds at 104...

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Accounting

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2. On February 1, 2020, Gates Company issued a P3,000,000 of 12% bonds at 104 which are due on January 31, 2023. In addition, each P1,000 bond was issued 15 warrants, each of which entitles the bondholder to purchase for P50 one ordinary share (P25 par value) of the company. On February 1, 2020, the fair market value of the ordinary share was P40 per share; the fair market value of the warrant was P4; and the fair market value of the bond ex-warrant was 101. (a) How much should the company record on February 1, 2020 as carrying value of the bonds? (b) How much of the amount received on the date of issuance is attributable to the equity component? (c) How much is the premium on bonds payable at the date of issuance

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