Question

On September 1, 2016, Sam's Shoe Co. Issued $390,000 of 10% bonds. The bonds pay interest semiannually on January 1 and July 1 of each year. The bonds were sold at the face amount. How much cash did Sam's recieve upon sale of the bonds?

A.) $409,500

B.) $429,000

C.) $369,500

D.) $390,000

Answer 1

Step-by-step explanation:

It is given that the bonds were sold at the face amount which is 390,000

This means that Sam's Shoe Co. received 390,000 because of the issue of bond