Determine the net amount of cash received from the bond issuance , In each case On October 1. 2021. Shane Company issued 5.000 of the P1.000 face valve. 12% bonds at 110 including accrued interest. The bonds which mature on January 1. 2026 pay interest semi-annually every January 1 and July 1. In addition. Shane Company incurred printing and engraving costs of P20.000: legal and accounting fees of P75.000: registration fees of P35.000: and underwriter's commission of P15.000. On April 1. 2021. Cain Company issued at 105 plus accrued interest 4.000 of its 9%. P1.000 face value bonds. The bonds are dated January 1. 2021 and mature on January I. 2031. Interest is paid semi-annually on January 1 and July 1. Cain paid bond issue costs of 150.000. On July 1. 2022, Mercurial Company issued at 98 plus accrued interest 2.500 of its 11%. P1.000 face value bonds. The bonds are dated March 1. 2022 and mature on March 1. 2027. Interest is paid semi-annually on March 1 and September 1. The issue price included bond issue costs of P50.000.
Determine the net amount of cash received from the bond issuance , In each case On October 1. 2021. Shane Company issued 5.000 of the P1.000 face valve. 12% bonds at 110 including accrued interest. The bonds which mature on January 1. 2026 pay interest semi-annually every January 1 and July 1. In addition. Shane Company incurred printing and engraving costs of P20.000: legal and accounting fees of P75.000: registration fees of P35.000: and underwriter's commission of P15.000. On April 1. 2021. Cain Company issued at 105 plus accrued interest 4.000 of its 9%. P1.000 face value bonds. The bonds are dated January 1. 2021 and mature on January I. 2031. Interest is paid semi-annually on January 1 and July 1. Cain paid bond issue costs of 150.000. On July 1. 2022, Mercurial Company issued at 98 plus accrued interest 2.500 of its 11%. P1.000 face value bonds. The bonds are dated March 1. 2022 and mature on March 1. 2027. Interest is paid semi-annually on March 1 and September 1. The issue price included bond issue costs of P50.000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Determine the net amount of cash received from the bond issuance, In each case
On October 1. 2021. Shane Company issued 5.000 of the P1.000 face valve. 12% bonds at 110 including accrued
interest. The bonds which mature on January 1. 2026 pay interest semi-annually every January 1 and July 1. In
addition. Shane Company incurred printing and engraving costs of P20.000: legal and accounting fees of P75.000:
registration fees of P35.000: and underwriter's commission of P15.000.
On April 1. 2021. Cain Company issued at 105 plus accrued interest 4.000 of its 9%. P1.000 face value bonds. The
bonds are dated January 1. 2021 and mature on January I. 2031. Interest is paid semi-annually on January 1 and July 1.
Cain paid bond issue costs of 150.000.
On July 1. 2022, Mercurial Company issued at 98 plus accrued interest 2.500 of its 11%. P1.000 face value bonds. The
bonds are dated March 1. 2022 and mature on March 1. 2027. Interest is paid semi-annually on March 1 and
September 1. The issue price included bond issue costs of P50.000.
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