Solution-What is the net cash receipt from the bond issuance

What is the net cash receipt from the bond issuance

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Reference no: EM133055953

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Q1. On April 1, 2021, RED Corp. issued at 99, 2,000 of its 8%, P1,000 bonds the bonds are dated April 1, 2021, to mature on April 1, 2021, and pay interest on April 1 and November 1. RED paid transaction cost of P20,000 from the issuance, how much net cash did RED receive?

a. P1,980,000

b. P2,020,000

c. P2,000,000

d. P1,960,000

Q2. On May 1, 2021, Blue Company issued P2M, 10 years, 9% bonds at 105 including accrued interest. These bonds are dated January 1, 2021. Interest is payable semi-annually on January 1 and July 1. Transaction costs of P10,000 were paid by Blue. What is the net cash receipt from the bond issuance?

a. P2,150,000

b. P2,090,000

c. P2,160,000

d. P2,100,000

Reference no: EM133055953

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What is the net cash receipt from the bond issuance

Reference no: EM133055953

Reference no: EM133055953

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