Question

During the year, Hamlet Inc. paid $ 26,000 to have bond certificates printed and engraved, paid $ 110,000 in legal fees, paid $ 12,000 to a CPA for registration information, and paid $ 240,000 to an underwriter as a commission. What is the amount of bond issue costs?

Answer 1

Answer:

$388,000

Explanation:

Data provided

Bond certificates printed = $26,000

Legal fees paid = $110,000

CPA registration = $12,000

Underwriter commission = $240,000

The calculation of amount of bond issue costs is shown below:-

Total Bond issue costs = Bond certificates printed + Legal fees paid + CPA registration + Underwriter commission

= $26,000 + $110,000 + $12,000 + $240,000

= $388,000