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Sikes Corporation, whose annual accounting period ends on December 31, issued the following bonds: Date of bonds: January 1, 2018 Maturity amount and date: $270,000 due in 10 years (December 31, 2027) Interest: 10 percent per year payable each December 31 Date issued: January 1, 2018 Required: 1. For each of the three independent cases that follow, provide the amounts to be reported on the January 1, 2018, financial statements immediately after the bonds are issued. TIP: See Exhibit for anlustration distinguishing Bonds Payable from their carrying value. Case A Case B Case C (At 100) (At 101) January 1, 2018--Financial statements: a. Bonds payable (At 97) 270,000 $ 270,000 b. Unamortized premium (or discount) 0 c. Carrying value 270,000 $ $ $ 270,000

Sikes Corporation, whose annual accounting period ends on December 31, issued the following bonds: Date of bonds: January 1, 2018 Maturity amount and date: $270,000 due in 10 years (December 31, 2027) Interest: 10 percent per year payable each December 31 Date issued: January 1, 2018 Required: 1. For each of the three independent cases that follow, provide the amounts to be reported on the January 1, 2018, financial statements immediately after the bonds are issued. TIP: See Exhibit for anlustration distinguishing Bonds Payable from their carrying value. Case A Case B Case C (At 100) (At 101) January 1, 2018--Financial statements: a. Bonds payable (At 97) 270,000 $ 270,000 b. Unamortized premium (or discount) 0 c. Carrying value 270,000 $ $ $ 270,000

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 6PA: Aggies Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1,...
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Sikes Corporation, whose annual accounting period ends on December 31, issued the following bonds: Date of bonds: January 1, 2018 Maturity amount and date: $270,000 due in 10 years (December 31, 2027) Interest: 10 percent per year payable each December 31 Date issued: January 1, 2018 Required: 1. For each of the three independent cases that follow, provide the amounts to be reported on the January 1, 2018, financial statements immediately after the bonds are issued. TIP: See Exhibit for anlustration distinguishing Bonds Payable from their carrying value. Case A Case B Case C (At 101) January 1, 2018-Financial statements: (At 100) (At 97) a. Bonds payable b. Unamortized premium (or discount) C. Carrying value $ $ 270,000 $ 0 270,000 270,000 $ 270,000
Transcribed Image Text:Sikes Corporation, whose annual accounting period ends on December 31, issued the following bonds: Date of bonds: January 1, 2018 Maturity amount and date: $270,000 due in 10 years (December 31, 2027) Interest: 10 percent per year payable each December 31 Date issued: January 1, 2018 Required: 1. For each of the three independent cases that follow, provide the amounts to be reported on the January 1, 2018, financial statements immediately after the bonds are issued. TIP: See Exhibit for anlustration distinguishing Bonds Payable from their carrying value. Case A Case B Case C (At 101) January 1, 2018-Financial statements: (At 100) (At 97) a. Bonds payable b. Unamortized premium (or discount) C. Carrying value $ $ 270,000 $ 0 270,000 270,000 $ 270,000
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