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.

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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