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Company purchased $60,000 of Stanton Company’s 12% bonds at 100 plus accrued interest of $2,400. On June 30, Pierce received its first semiannual interest. On February 1, Pierce sold $50,000 of the bonds at 103 plus accrued interest.What are the total proceeds from the February 1 sale?

a. $52,000
b. $50,000
c. $52,400
d. $51,500

User Force Hero
by
8.5k points

1 Answer

3 votes

Answer:

d. $51,500

Step-by-step explanation:

Proceed from sale of the bonds

face value x quote

50,000 x 103/100 = 51,500

The company will recognize a gain from the sale of 1,500 dollars as it sold the investment for 51,500 while it was valued at 50,000 in their books

User Vmachan
by
8.7k points
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