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.
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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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- 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.
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