On July 1, 2014, Spear Co. issued 2,000 of its 10%, $1,000 bonds at 99 plus accrued interest. The bonds are dated April 1, 2014 and mature on April 1, 2024. Interest is payable semiannually on April 1 and October 1. What amount did Spear receive from the bond issuance?

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Spear Co. issued the bonds at 99, which means they were issued at 99% of their face value. The face value of the bonds is $2,000,000 (2,000 bonds x $1,000 each). At 99%, the issuance amount is $1,980,000. Additionally, since the bonds were issued on July 1, 2014, and interest is payable semiannually, Spear Co. also received accrued interest for three months (April to July) amounting to $50,000 (2,000 bonds x $1,000 x 10% x 3/12), making the total amount received $2,030,000.