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On January 1, 2021, Classroom Company issued 10% bonds in the face amount of P5,000,000 that mature on January 1, 2026. The bonds were issued
On January 1, 2021, Classroom Company issued 10% bonds in the face amount of P5,000,000 that mature on January 1, 2026. The bonds were issued for P4,580,000 to yield 12%, resulting in bond discount of P420,000. Classroom Company used the interest method. Interest is payable semiannually on January 1, and July 1. What is the carrying amount of the bonds payable on December 31, 2021?
4,629,600
4,604,800
4,631,088
4,580,000
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