On SEPTEMBER 30,2011,Ace Electronics issued $100,000 of 10-year,8% bonds at 100.The bonds pay interest semiannually on September 30 and March 31.How much cash did Ace Electronics receive when the bonds were issued?
A)$1,000,000
B)$92,000
C)$108,000
D)$100,000

Question

On SEPTEMBER  30,2011,Ace Electronics issued $100,000 of 10-year,8% bonds at 100.The bonds pay interest semiannually on September 30 and March 31.How much cash did Ace Electronics receive when the bonds were issued?
A)$1,000,000
B)$92,000
C)$108,000
D)$100,000

Quizplus · Accepted Answer

Ace Electronics received $100,000 in cash when the bonds were issued because the bonds were issued at 100% of their face value.

On SEPTEMBER 30,2011,Ace Electronics Issued $100,000 of 10-Year,8% Bonds