On January 1, 2011, Baddour, Inc., issued 10% bonds with a face amount of $160 million. The
Question:
On January 1, 2011, Baddour, Inc., issued 10% bonds with a face amount of $160 million. The bonds were priced at $140 million to yield 12%. Interest is paid semiannually on June 30 and December 31. Baddour's fiscal year ends September 30.
Required:
1. What amount(s) related to the bonds would Baddour report in its balance sheet at September 30, 2011?
2. What amount(s) related to the bonds would Baddour report in its income statement for the year ended September 30, 2011?
3. What amount(s) related to the bonds would Baddour report in its statement of cash flows for the year ended September 30, 2011? In which section(s) should the amount(s) appear?
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Step by Step Answer:
1 Liabilities at September 30 2011 Bonds payable face amount 160000000 Less discount 20000000 Initia...View the full answer
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
