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.
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 4EB: Chung Inc. issued $50,000 of 3-year bonds on January 1, 2018, with a stated rate of 4% and a market...
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- 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.
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