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On December 1, 2018, the Lawrz Corporation issued five-year, non-convertible P5,000,000 face value 12% bonds for P5,386,072, a price that yields 10%. Interest is payable semi-annually on June 1 and December 1. On August 1, 2021, the Lawrz Corporation retired P3,000,000 of the bonds at 105 plus interest. The Accounting period for the Lawrz Corporation is the calendar year. What is the carrying value of the bonds retired on August 1, 2021? a. 3,125,172 b. 3,127,008 c. 3,129,355 d. 3,200,061 e. 3,122,038

On December 1, 2018, the Lawrz Corporation issued five-year, non-convertible P5,000,000 face value 12% bonds for P5,386,072, a price that yields 10%. Interest is payable semi-annually on June 1 and December 1. On August 1, 2021, the Lawrz Corporation retired P3,000,000 of the bonds at 105 plus interest. The Accounting period for the Lawrz Corporation is the calendar year. What is the carrying value of the bonds retired on August 1, 2021? a. 3,125,172 b. 3,127,008 c. 3,129,355 d. 3,200,061 e. 3,122,038

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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On December 1, 2018, the Lawrz Corporation issued five-year, non-convertible P5,000,000 face
value 12% bonds for P5,386,072, a price that yields 10%. Interest is payable semi-annually on
June 1 and December 1. On August 1, 2021, the Lawrz Corporation retired P3,000,000 of the
bonds at 105 plus interest. The Accounting period for the Lawrz Corporation is the calendar
year.
 
 What is the carrying value of the bonds retired on August 1, 2021?
a. 3,125,172
b. 3,127,008
c. 3,129,355
d. 3,200,061
e. 3,122,038
 
please explain
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