E-Tech Initiatives Limited plans to issue $630,000, 10-year, 6.00 percent bonds. Interest is payable annually on December 31. All of thebonds will be issued on January 1, 2019. Show how the bonds would be reported on the January 2, 2019, balance sheet if they areissued at 103.E-TECH INITIATIVES LIMITEDBalance Sheet (partial)As of January 2, 2019Carrying Value0

Question
Asked Dec 10, 2018
E-Tech Initiatives Limited plans to issue $630,000, 10-year, 6.00 percent bonds. Interest is payable annually on December 31. All of the
bonds will be issued on January 1, 2019. Show how the bonds would be reported on the January 2, 2019, balance sheet if they are
issued at 103.
E-TECH INITIATIVES LIMITED
Balance Sheet (partial)
As of January 2, 2019
Carrying Value
0
help_outline

Image Transcriptionclose

E-Tech Initiatives Limited plans to issue $630,000, 10-year, 6.00 percent bonds. Interest is payable annually on December 31. All of the bonds will be issued on January 1, 2019. Show how the bonds would be reported on the January 2, 2019, balance sheet if they are issued at 103. E-TECH INITIATIVES LIMITED Balance Sheet (partial) As of January 2, 2019 Carrying Value 0

fullscreen
check_circleExpert Solution
Step 1

Par value of Bonds:          $ 630000

Issue price:                                    103

Total Issue price: (630000*103%): $ 648900

Premium on Bonds payable: (648900-630000): 18900

Step 2

Balance Sheet (partial) as on Jan 02, 2019

Bonds payable (par value):                                                      630000

Add: Premium on b...

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour*

See Solution
*Response times may vary by subject and question
Tagged in

Business

Accounting

Related Accounting Q&A

Find answers to questions asked by student like you

Show more Q&A add
question_answer

Q: 11.4Calculate financial leverage measures The following information was available for the year ended...

A: Calculate the debt ratio.

question_answer

Q: On January 1, 2019, Shenzhen ltd. Issued a 10% convertible bond at par, with a face value $100,000 m...

A: A convertible bond represents a bond that can be converted into certain number of shares by its hold...

question_answer

Q: Gelb Company currently manufactures 40,000 units per year of a key component for its manufacturing p...

A: The decision to manufacture or buy needs to be taken on the basis of impact of cost changes arising ...

question_answer

Q: Early in the year Bill Sharnes and several friends organized a corporation called Sharnes Communicat...

A: Journal entries means writing down the transaction that takes place in a business, in the journal of...

question_answer

Q: On December 31, an entity had a reporting unit that had a book value of $3,450,000, including goodwi...

A: Under the new standard, goodwill needs to be impaired if the reporting unit's carrying value is more...

question_answer

Q: I'm having trouble solving this problem. Thanks!

A: (a) Determine the times interest earned ratio:

question_answer

Q: Hi-Tek Manufacturing Inc. makes two types of industrial component parts—the B300 and the T500. An ab...

A: Activity-based costing (ABC) Under the ABC method, the overhead cost is assigned on the basis of act...

question_answer

Q: FB Manufacturing Company is a partnership among Yolando Gonzalez, Willies Todd, and Linda Walkers. T...

A: Partnership: A partnership is that type of business in which two or more person share loss and profi...

question_answer

Q: Purchase of investments $ 170 Dividends paid   1,120 Interest paid   320 Additional borrowing ...

A: Cash flow from financing activities:  This section of cash flows statement provides information abou...