On October 1, 2021, Shane Company issued 5,000 of the P1,000 face value, 12% bonds at 110 including accrued interest. The bonds which mature on January 1, 2026 pay interest semi-annually every January 1 and July 1. In addition, Shane Company incurred printing and engraving costs of P20,000; legal and accounting fees of P75,000; registration fees of P35,000; and underwriter’s commission of P15,000. Determine the net amount of cash received from the bond issuance.

On October 1, 2021, Shane Company issued 5,000 of the P1,000 face value, 12% bonds at 110 including accrued interest. The bonds which mature on January 1, 2026 pay interest semi-annually every January 1 and July 1. In addition, Shane Company incurred printing and engraving costs of P20,000; legal and accounting fees of P75,000; registration fees of P35,000; and underwriter’s commission of P15,000. 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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