Eddie industries issues $1,500,000 of 8% bonds at 105, the amount of cash received from the sale is

Solution:

It is given that

Face value of bonds = $1,500,000

Issued price = 105

Cash received from the sale can be found by multiplying the face value with the issued price.

So we get,

Cash received from the sale = 1,500,000 × 105/100

= 1,575,000

Therefore, the amount of cash received from the sale is $ 1,575,000.

Eddie industries issues $1,500,000 of 8% bonds at 105, the amount of cash received from the sale is

Summary:

Eddie industries issues $1,500,000 of 8% bonds at 105, the amount of cash received from the sale is $ 1,575,000.