On October 1, 2020, Shane Company issued 5,000 12% bonds with face amount of P1,000 per bond at 110. The bonds which January 1, 2025, pay interest semiannually on January 1 and July 1. The entity paid bond issue cost of mature on P200,000. How much cash was received from the issuance of the bonds? a. 5,450,000 b. 5,650,000 c. 5,300,000 d. 5,550,000
On October 1, 2020, Shane Company issued 5,000 12% bonds with face amount of P1,000 per bond at 110. The bonds which January 1, 2025, pay interest semiannually on January 1 and July 1. The entity paid bond issue cost of mature on P200,000. How much cash was received from the issuance of the bonds? a. 5,450,000 b. 5,650,000 c. 5,300,000 d. 5,550,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Problem 5-13 (AICPA Adapted)
On October 1, 2020, Shane Company issued 5,000 12% bonds
with face amount of P1,000 per bond at 110. The bonds which
January 1 and July 1. The entity paid bond issue cost of
How much cash was received from the issuance of the bonds?
2,200,000
1,800,000
3,000,000
January 1, 2025, pay interest semiannually on
mature on
P200,000.
a. 5,450,000
b. 5,650,000
c. 5,300,000
с.
d. 5,550,000
Problem 5-14 (AICPA Adapted)
On April 1, 2020, Greg Company issued, at 99 plus accrued
interest, 4,000 8% bonds with face amount of P1,000 per bond.
The bonds are dated January 1, 2020, mature on January 1,
2030, and pay interest on January 1 and July 1. The entity
paid bond issue cost of P140,000.
0,000
0,000
,000
How much cash was received from the bond issuance?
a. 4,040,000
b. 3,960,000
c. 3,900,000
d. 3,820,000
с.
On July 1, 2020, Carol Company issued at 104, five thousand
10% bonds with face amount of P1,000 per bond. The bonds
were issued through an underwriter to whom the entity paid
bond issue cost of P125,000.
Problem 5-15 (AICPA Adapted)
On July 1, 2020, what is the carrying amount of the bonds
payable?
a. 4,875,000
b. 5,075,000
c. 5,200,000
d. 5,325,000
101
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