Medstar Ambulance Service
Information from the company's financial records is presented below: At the end of 2020, the company issued notes at par value for $1,200,000 cash. The proceeds were used to retire the $1,000,000 note issue outstanding at the end of 2019 (before their maturity date). All interest expense was paid in cash during 2020.
-Refer to Medstar Ambulance Service. How much was paid to retire the $1,000,000 note issue during 2020?

Question

Medstar Ambulance Service
Information from the company's financial records is presented below:  At the end of 2020, the company issued notes at par value for $1,200,000 cash. The proceeds were used to retire the $1,000,000 note issue outstanding at the end of 2019 (before their maturity date). All interest expense was paid in cash during 2020.
-Refer to Medstar Ambulance Service. How much was paid to retire the $1,000,000 note issue during 2020?

Quizplus · Accepted Answer

The company issued notes at par value for $1,200,000 cash and used the proceeds to retire the $1,000,000 note issue outstanding. This means that they paid off the entire outstanding amount of $1,000,000. Therefore, the amount paid to retire the note during 2020 is $1,000,000.

Medstar Ambulance Service Information from the Company's Financial Records Is Presented Below