Q1. What is the carrying value of the bonds on December 31, 2019? a. 5,306,515 b. 5,309,000 c. 5,309,010 d. 5,317,505 Q2. 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 Q3. What is the gain or loss on redemption of the bonds on August 1, 2021?
Q1. What is the carrying value of the bonds on December 31, 2019? a. 5,306,515 b. 5,309,000 c. 5,309,010 d. 5,317,505 Q2. 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 Q3. What is the gain or loss on redemption of the bonds on August 1, 2021?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
On December 1, 2018, the Lawrz Corporation issued five-year, non-convertible P5,000,000 face
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.
Q1. What is the carrying value of the bonds on December 31, 2019?
a. 5,306,515
b. 5,309,000
c. 5,309,010
d. 5,317,505
Q2. 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
Q3. What is the gain or loss on redemption of the bonds on August 1, 2021?
a. 24,828 loss
b. 24,848 loss
c. 24,828 gain
d. 24,848 gain
e. 27,962 loss
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