Following are selected transactions in chronological order of Bayombong Company and its trustee in connection with a sinking fund. a. Cash contribution to the sinking fund, P1,000,000.  b. Acquisition of securities at par by the trustee, P700,000.  c. The trustee receives interest on the securities, P60,000.  d. The trustee pays expenses of P30,000.  e. The trustee sells the securities for P800,000 plus accrued interest of P10,000. f. The trustee pays bonds payable of P1,000,000 and interest of P100,000.  g. The trustee remits the remaining cash to Bayombong Company.  How much was remitted by the trustee to Bayombong Company?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Following are selected transactions in chronological order of Bayombong Company and its trustee in connection with a sinking fund.

a. Cash contribution to the sinking fund, P1,000,000. 

b. Acquisition of securities at par by the trustee, P700,000. 

c. The trustee receives interest on the securities, P60,000. 

d. The trustee pays expenses of P30,000. 

e. The trustee sells the securities for P800,000 plus accrued interest of P10,000.

f. The trustee pays bonds payable of P1,000,000 and interest of P100,000. 

g. The trustee remits the remaining cash to Bayombong Company. 

How much was remitted by the trustee to Bayombong Company? 

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