On January 1, 2020, Orange Company was authorized to issue 6% bonds with face amount of P5,000,000 maturing on December 31, 2021. Interest is payable semiannually on June 30 and

On January 1, 2020, Orange Company was authorized to issue 6% bonds with face amount of P5,000,000 maturing on December 31, 2021. Interest is payable semiannually on June 30 and December 31. On January 1, 2020, the entity issued all of the bonds for P4,818,500 with an effective rate of 8%. The fiscal year of the entity is the calendar year and the effective interest method of amortization is used. REQUIRED: 1. Prepare a table of amortization for the discount. 2. Prepare journal entries for 2020 and 2021.