Reporting Long-Term Debt on the Balance SheetScott Corp. provides contracted home staging services to real estate agencies and their clients. Scott issued the following bonds in the current year:Required: Hide  a.  Prepare the balance sheet for 1,500 bonds with $1,000 face value which the market has valued at $45,000 below its face value.Scott Corp.Balance Sheet (Partial)   $       Bonds payable, net   $   Hide  b.  Prepare the balance sheet for 2,700 bonds with $1,000 face value which the market has valued at $85,000 above its face value.Scott Corp.Balance Sheet (Partial)   $       Bonds payable, net   $

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Asked Oct 27, 2019
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Reporting Long-Term Debt on the Balance Sheet

Scott Corp. provides contracted home staging services to real estate agencies and their clients. Scott issued the following bonds in the current year:

Required:


  Hide    

a.  Prepare the balance sheet for 1,500 bonds with $1,000 face value which the market has valued at $45,000 below its face value.



Scott Corp.
Balance Sheet (Partial)
 
 
 
$
   
 
 
 
   
Bonds payable, net
     
$

 

 


  Hide    

b.  Prepare the balance sheet for 2,700 bonds with $1,000 face value which the market has valued at $85,000 above its face value.



Scott Corp.
Balance Sheet (Partial)
 
 
 
$
   
 
 
 
   
Bonds payable, net
     
$

 

 
 

 

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Expert Answer

Step 1

Balance sheet:

This financial statement reports a company’s resources (assets) and claims of creditors (liabilities) and stockholders (stockholders’ equity) over those resources. The resources of the company are assets which include money contributed by stockholders and creditors. Hence, the main elements of the balance sheet are assets, liabilities, and stockholders’ equity.

Step 2

a. Prepare the balance sheet for 1,500 bonds with $1,000 face val...

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Corporation Scott Balance sheet (Partial) Bonds payable (1,500x$1,000) $ 1,500,000 Less: Discount on Bonds $ 45.000 рayable $ 1,455,000 Bonds payable, net

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