PECAN Company issued ₱10,000,000 face value bonds at 95 plus accrued interest on March 1, 2021. PECAN Company paid bond issue cost of ₱1,000,000. The bonds were dated November 1, 2020, mature on November 1, 2025, and bear interest at 12% payable semiannually on November 1 and May 1. What amount did PECAN receive from the bond issuance? A. ₱ 8,900,000 B. ₱ 9,500,000 C. ₱ 8,700,000 D. ₱ 8,500,000
PECAN Company issued ₱10,000,000 face value bonds at 95 plus accrued interest on March 1, 2021. PECAN Company paid bond issue cost of ₱1,000,000. The bonds were dated November 1, 2020, mature on November 1, 2025, and bear interest at 12% payable semiannually on November 1 and May 1. What amount did PECAN receive from the bond issuance? A. ₱ 8,900,000 B. ₱ 9,500,000 C. ₱ 8,700,000 D. ₱ 8,500,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
PECAN Company issued ₱10,000,000 face
What amount did PECAN receive from the bond issuance?
A. ₱ 8,900,000
B. ₱ 9,500,000
C. ₱ 8,700,000
D. ₱ 8,500,000
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