Provide solutions CASE 6ABC Co. is contemplating on issuing a 12%, 3-year, P1,000,000 bonds.Principal is due at maturity but interest is due semi-annually everyJuly 1 and December 31. ABC determines that the current market rate onJanuary 1, 20x1 is 14%. ABC Co. plans to issue the bonds on September30, 20x1.15. How much is the estimated total proceeds from the issuance of thebonds on September 30, 20x1?a. 666,342b. 962,563c. 952,334d. 992,563CASE 7On January 1, 20x1, SALIENT PROMINENT Co. issued 1,000, P4,000, 12%, 3-year bonds for P4,412,336. Principal is due on December 31, 20x3 butinterests are due annually every year-end. In addition, SALIENT incurredbond issue cost of P213,388.The effective interest rate before adjustmentfor transaction costs is 8%.16. How much is the carrying amount of the note on December 31, 20x1?a. 4,019,832b. 4,198,948c. 4,288,776d. 4,138,843

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ABC Co. is contemplating on issuing a 12%, 3-year, Principal is due at maturity but interest is due semi-annually every July 1 and December 31. ABC determines that the current market rate on January 1, 20x1 is 14%. ABC Co. plans to issue the bonds on September 30, 20x1. P1,000,000 bonds. 15. How much is the estimated total proceeds from the issuance of the bonds on September 30, 20x1? a. 666,342 b. 962,563 c. 952,334 d. 992,563

ABC Co. is contemplating on issuing a 12%, 3-year, Principal is due at maturity but interest is due semi-annually every July 1 and December 31. ABC determines that the current market rate on January 1, 20x1 is 14%. ABC Co. plans to issue the bonds on September 30, 20x1. P1,000,000 bonds. 15. How much is the estimated total proceeds from the issuance of the bonds on September 30, 20x1? a. 666,342 b. 962,563 c. 952,334 d. 992,563

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 15MCQ

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