2,200,000 1,800,009 3,000,000 by installments. 4,000,000 1,000,000 1,800,000 2,000,000 bonds?orted the following long-term debt on December st s, convertible i ee ordinary ing in 2023, due in 2024 debentures, P500,000 maturing ning in 2023 3,000,000 1,500,000 3,500,000 3,000,000 6,500,000 mature on a single date. Callable and term bonds. , 1,500,.000Problem 8-4 (AICPA Adapted) Cn March 1, 2021, Cain Compan issued at a) oA acerue d ooeat 4 000 bonds of 9%, P1,000 face armoui i" DONSS ate dated January 1,2021 and mature on January *; Re Interest is payable semiannually on January 1 and July 1. The entity paid bond issue cost 0 P200,000. i a7 What is the net cash received from the bond issuance? a. 4,320,000 b. 4,180,000 c. 4,120,000 d. 3,980,000 Solution 8-4 Answer d Issue price (4,000,000 x 103%) 4,120,000 Accrued interest from January | to March 1, 2021 (4,000,000 x 9% x 2/12) __ 60,000 4,180,000 Total 180, Bond issue cost -( 200,000) Net cash received from bond issuance _ 3,980,000 Problem 8-5 (AICPA Adapted) OnApril 1, 2021, Greg Company issued at 99 plus accrued interest, 2,000 of 8% P1.000 face amount bonds. The bonds are dated January 1, 2021, mature on January 1, 2031, and pay interest on January 1 and July 1. The entity paid bond issue cost of P70,000. From the bond issuance, what is the net cash received? 1,980,000 40,000 to April 1, 2021 2,020,000 70,000) 1,950,000year, Eddy Company : of bonds: the following costsin 200,000 150,000 independent accountants f istrati 00.000 paid to underwriter oo 1 50,000 should be recorded as bond issue costs to be amortized of the bonds? are treated as bond issue costs. 4 PA Adapted) 31, 2022, Beau Company issued P3,000,000 maturity onds for P3,000,000 cash. The bonds are dated 021 and mature on December 31, 2031. Interest is iy on June 30 and December 31. yf accrued in’ terest payable should be reported from June 30, 2022 to : ,000 3,000,000 x 12% x 3/12) 90 119