In Intermediate Accounting 2 book of Millan in accounting for bonds payable please answer this with complete solution

On January 1, 2020,Gwapo Company issued12%,5-year, P5,000,000 bonds for 98 less bond issue cost of P50,000.Principal is payable upon maturity while interest is due annually

On July 31, 2022, the bonds were retired at 99 plus accruedinterest.

Required:TOTALPOINTS

• Prepare the necessary journal entriesfrom the issuance of the bonds on January 1, 2020 up to its retirement onJuly 31, 2022.
• What is the effective interest rate
• What was the carrying amount of the bondson its retirement date, July 31, 2022?
• How much is the gain or loss on extinguishment?