Homework Answers
Solution:
| calculation of net amount received on issuance of bonds | |
| cash received on bond issue | |
| Issue price (3980000*103%) | 4,099,400 |
| accrued interest for 2 months (3980000*0.09*2/12) | 59,700 |
| 4,159,100 | |
| Less : bond issuance cost | 30,000 |
| net amount received | 4,129,100 |
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