Bonds Payable - HELP!

[ynnejolem]

I have this accounting problem and i can't figure out the answer...

On April 1, 2012, A Company issued, at 99 plus accrued interest, $4,000 of its 8% $1,000 bonds. The bonds are dated January 1, 2012, matures on January 1, 2022, and pay interest on January 1 and July 1. A Company paid bond issue costs of $140,000.

How much cash was received by A Company from the bond issuance?

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I have this solution: But it is still wrong
4,000,000 x .99 = 3,960,000
4,000,000 x 8% x 9/12 = 240,000
Less: issue cost 140,000
=4,060,000

Please help me

 

[ArcSine]

At issue date only 3 months of interest had accrued.

 

[iNinjaNotes]

The question is a little bit poorly worded but I'm going to try my best to solve for it.

4000 bonds * $1000 FV * 99% FV = $3,960,000
4000 bonds * $1000 FV * (3/12) [Jan, Feb, March] * 8% = 80,000 interest accrued.

Bond Payable = $3,960,000 + 80,000 = $4,040,000
subtract: Issuing costs of $140,000

= Bond Payable amount of $3,900,000

 

[iNinjaNotes]

This is of course if 4000 represents the number of bonds issued!