Accounting, Analysis, and Principles

UX$13\mathrm{.}4$ The following information is taken from the $2025$ annual report of Bugant, Inc. Bugant's fiscal year ends December $31$ of each year. Bugant's December $31,2025,$ balance sheet is as follows.

Note X: Long Term Debt:

On January $1,2024,$ Bugant issued bonds with face value of $$1,500$ and a coupon rate equal to $10\%.$ The bonds were issued to yield $12\%$ and mature on January $1,2029.$

Additional information concerning $2026$ is as follows.

Sales were $$3,500,$ all for cash.

Purchases were $$2,000,$ all paid in cash.

Salaries were $$700,$ all paid in cash.

Property, plant, and equipment was originally purchased for $$2,000$ and is depreciated straight$-$line over a $25-$year life with no salvage value.

Ending inventory was $$1,900.$

Cash dividends of $$100$ were declared and paid by Bugant.

Ignore taxes.

The market rate of interest on bonds of similar risk was $12\%$ during all of $2026.$

Interest on the bonds is paid semiannually each June $30$ and December $31.$

Accounting

Prepare a balance sheet for Bugant, Inc. at December $31,2026,$ and an income statement for the year ending December $31,2026.$ Assume semiannual compounding of the bond interest.

Analysis