Problem
On January 21, 2023, PORKY PIG Company issued 5-year bonds with face value of P5,000,000 at 110. The company paid bond issue cost of P80,000 in same date. The stated interest rate on the bonds is 8% payable annually every December 31. After consideration of bond issue costs to be initially measured, the bonds were determined to yield 6% per annum.
On December 31, 2023, what should PORKY PIG report as carrying amount of the bonds payable?