On January 1, 2022, Balagtas Corp. issued 5-year bonds with face amount of P5,000,000 at 118.0. The entity paid issue cost of P100,000 on the same date. The stated interest rate on the bonds is 12% payable annually every December 31, 2022. The bonds are issued to yield 8% per annum after considering the bond issue cost. 10. How much is the net cash proceeds from issuance of bonds on January 1, 2022

On January 1, 2022, Balagtas Corp. issued 5-year bonds with face amount of P5,000,000 at 118.0. The entity paid issue cost of P100,000 on the same date. The stated interest rate on the bonds is 12% payable annually every December 31, 2022. The bonds are issued to yield 8% per annum after considering the bond issue cost. 10. How much is the net cash proceeds from issuance of bonds on January 1, 2022

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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