[The following information applies to the questions displayed below.] Alexi Co. issued $3.30 million face amount of 5%, 10-year bonds on June 1, 2019. The bonds pay interest on an annual basis on May 31 each year. b-1. Independent of your answer to part a, assume that the proceeds were $2,936,000. Use the horizontal model to show the effect of issuing the bonds. Indicate the financial statement effect. (Enter your answers in whole dollars, not in millions. Enter decreases with a minus sign to indicate a negative financial statement effect.)
[The following information applies to the questions displayed below.] Alexi Co. issued $3.30 million face amount of 5%, 10-year bonds on June 1, 2019. The bonds pay interest on an annual basis on May 31 each year. b-1. Independent of your answer to part a, assume that the proceeds were $2,936,000. Use the horizontal model to show the effect of issuing the bonds. Indicate the financial statement effect. (Enter your answers in whole dollars, not in millions. Enter decreases with a minus sign to indicate a negative financial statement effect.)
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 1MC
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[The following information applies to the questions displayed below.]
Alexi Co. issued $3.30 million face amount of 5%, 10-year bonds on June 1, 2019. The bonds pay interest on an annual basis on May 31 each year.
b-1. Independent of your answer to part a, assume that the proceeds were $2,936,000. Use the horizontal model to show the effect of issuing the bonds. Indicate the financial statement effect. (Enter your answers in whole dollars, not in millions. Enter decreases with a minus sign to indicate a negative financial statement effect.)
!['isplayed below.]
year bonds on June 1, 2019. The bonds pay interest on an annual
proceeds were $2,936,000. Use the horizontal model to show the effect of
Enter your answers in whole dollars, not in millions. Enter decreases with
ffect.)
Sheet
Income Statement
Liabilities
+
Stockholders' Equity
Net Income
Revenues
Expenses
+
%3D
s payable
+
II
II](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffea94a50-e8e7-419f-bb62-28be718638fb%2F9af401cf-57ef-4790-a342-6b60e5caf232%2F665ocbm_processed.png&w=3840&q=75)
Transcribed Image Text:'isplayed below.]
year bonds on June 1, 2019. The bonds pay interest on an annual
proceeds were $2,936,000. Use the horizontal model to show the effect of
Enter your answers in whole dollars, not in millions. Enter decreases with
ffect.)
Sheet
Income Statement
Liabilities
+
Stockholders' Equity
Net Income
Revenues
Expenses
+
%3D
s payable
+
II
II
![Required information
[The following information applies to the questions displayed below.]
Alexi Co. issued $3.30 million face amount of 5%, 10-year bonds on June 1, 2019. The bonds pay interest on an annual
basis on May 31 each year.
b-1. Independent of your answer to part a, assume that the proceeds were $2,936,000. Use the horizontal model to show the effect of
issuing the bonds. Indicate the financial statement effect. (Enter your answers in whole dollars, not in millions. Enter decreases with
a minus sign to indicate a negative financial statement effect.)
Balance Sheet
Income Statement
Assets
Liabilities
Stockholders' Equity
Net Income
Revenues
Expenses
+
Cash
2,936,000 = Bonds payable
+
%3D
= Discount on bonds payable
+
II](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffea94a50-e8e7-419f-bb62-28be718638fb%2F9af401cf-57ef-4790-a342-6b60e5caf232%2F4t7n2e7_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Alexi Co. issued $3.30 million face amount of 5%, 10-year bonds on June 1, 2019. The bonds pay interest on an annual
basis on May 31 each year.
b-1. Independent of your answer to part a, assume that the proceeds were $2,936,000. Use the horizontal model to show the effect of
issuing the bonds. Indicate the financial statement effect. (Enter your answers in whole dollars, not in millions. Enter decreases with
a minus sign to indicate a negative financial statement effect.)
Balance Sheet
Income Statement
Assets
Liabilities
Stockholders' Equity
Net Income
Revenues
Expenses
+
Cash
2,936,000 = Bonds payable
+
%3D
= Discount on bonds payable
+
II
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