On March 1, 2021, RED Corporation issued at 103 plus accrued interest, 1,000 of its 9%,₱1,000 bonds. The bonds are dated January 1, 2021, and mature on January 1, 2026. Interest is payable semi-annually on January 1 and July 1. RED paid transaction costs of ₱5,000. How much would RED realize as net cash receipts from the bond issuance? a. ₱ 1,030,000 b. ₱ 1,045,000 c. ₱ 1,025,000 d. ₱ 1,040,000

On March 1, 2021, RED Corporation issued at 103 plus accrued interest, 1,000 of its 9%,₱1,000 bonds. The bonds are dated January 1, 2021, and mature on January 1, 2026. Interest is payable semi-annually on January 1 and July 1. RED paid transaction costs of ₱5,000. How much would RED realize as net cash receipts from the bond issuance? a. ₱ 1,030,000 b. ₱ 1,045,000 c. ₱ 1,025,000 d. ₱ 1,040,000

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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a. ₱ 1,030,000

b. ₱ 1,045,000

c. ₱ 1,025,000

d. ₱ 1,040,000

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