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(a) On March 1, 2018, Novak Co. issued at 103 plus accrued interest $4,170,000, 8% bonds. The bonds are dated January 1, 2018, and
(a) On March 1, 2018, Novak Co. issued at 103 plus accrued interest $4,170,000, 8% bonds. The bonds are dated January 1, 2018, and pay interest semiannually on July 1 and January 1. In addition, Novak Co. Incurred $25,000 of bond issuance costs. Compute the net amount of cash received by Novak Co. as a result of the issuance of these bonds. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 5,275.) Net amount of cash received $ (b) On January 1, 2017, Splish Co. issued 8% bonds with a face value of $683,000 for $599,063 to yield 10%. The bonds are dated January 1, 2017, and pay interest annually. What amount is reported for interest expense in 2017 related to these bonds, assuming that Splish used the effective-interest method for amortizing bond premium and discount? (Round answer to 0 decimal places, e.g. 38,548.) Interest expense to be reported for 2017 $ (c) Blossom Building Co. has a number of long-term bonds outstanding at December 31, 2017. These long-term bonds have the following sinking fund requirements and maturities for the next 6 years. 2018 2019 2020 2021 2022 2023 Sinking Fund $280,000 98,000 98,000 196,000 196.000 196,000 Maturities $98.000 270.000 98,000 165,000 98,000 Y Indicate how above information should be reported in the financial statements at December 31, 2017. (Round answers to 0 decimal places, e.g. 38.548.) Maturities and sinking fund requirements 2018 2019 2020 2021 2022 Thereafter $ (d) In the long-term debt structure of Blue Inc. the following three bonds were reported: mortgage bonds payable 19,904,000; collateral trust bonds $5,037,000; bonds maturing in installments, secured by plant equipment $3,907,000. Determine the total amount, if any, of debenture bonds outstanding. Total amount $
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