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 1, 2021. Interest is paid semi-annually on January 1 and July 1. Cain paid bond issue costs of 150,000. Determine the net amount of cash received from the bond issuance.

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 1, 2021. Interest is paid semi-annually on January 1 and July 1. Cain paid bond issue costs of 150,000. Determine the net amount of cash received from the bond issuance.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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