Question
Annual interest rate on the bonds is 12%. In Transaction/Issue #6, on August 1st, World Series Inc recognized some interest expense and changed the value
Annual interest rate on the bonds is 12%. In Transaction/Issue #6, on August 1st, World Series Inc recognized some interest expense and changed the value of the outstanding bonds. Make sure the annual interest expense matches the bonds outstanding during the year, otherwise make an adjustment.
Please fill out these boxes:
for ALL of these boxes, you can choose - which indicates that none of the answers are applicable
Balance Sheet
cash asset box: -31, -15, -10, -9, -5, -3
Non-cash assets box 1: 3, 5, 9, 10, 15, 31
Non-cash assets box 2: Bonds payable, Interest expense, Interest payable, Prepaid Interest, Retained earnings
Liabilities box 1: 3, -5, 9, 10, 15, 31
Liabilities box 2: Bonds payable, Interest expense, Interest payable, Prepaid Interest, Retained earnings
contrib capital box 1: 3, 5, 9, 10, 15, 31
contrib capital box 2: Bonds payable, Interest expense, Interest payable, Prepaid Interest, Retained earnings
earned capital box 1:-31, -15, -10, -9, -5, -3, 3, 5, 9, 10, 15, 31
earned capital box 2: Bonds payable, Interest expense, Interest payable, Prepaid Interest, Retained earnings
Income Statement
revenues box 1: 3, 5, 9, 10, 15, 31
revenues box 2: Interest expense, Interest income, interest payable, prepaid interest, retained earnings
expenses box 1: 3, -5, 9, 10, 15, 31
expenses box 2:Interest expense, Interest income, interest payable, prepaid interest, retained earnings
net income: -31, -15, -10, -9, -5, -3, 3, 5, 9, 10, 15, 31
Balance Sheet: Income Statement: Balance Sheet: Income StatementStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started