How much cash was received from the bond issuance

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Problem 1: On October 1, 2020, Shape Company issued 5,000 12% bonds with face value amount of P1,000 per bond at 110. The bonds which mature on January 1, 2025 pay interest semi-annually on January 1 and July 1. The entity paid bond issue cost of P200,000. How much cash was received from the issuance of the bonds?

Problem 2: On April 1, 2020, Green 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. How much cash was received from the bond issuance?

Reference no: EM132678676

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