What amount of cash would Agatha have recieved ? During 2016 and 2017, Agatha Co

Question

What amount of cash would Agatha have recieved ?

During 2016 and 2017, Agatha Corp. completed the following transactions relating to its bond issue. The corporation's fiscal year is the calendar year. 2016 Jan. 1 Issued $300,000 of 10-year, 6 percent bonds for $294,000. The annual cash payment for interest is due on December 31. Dec. 31 Recognized interest expense, including the straight-line amortization of the discount, and made the cash payment for interest. Dec. 31 Closed the interest expense account. 2017 Dec. 31 Recognized interest expense, including the straight-line amortization of the discount, and made the cash payment for interest. Dec. 31 Closed the interest expense account.

Explanation / Answer

If bonds are sold at face value then amount received at bond issue = $ 300,000

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