Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Appling Enterprises issued 10% bonds with a face amount of $420,000 on January 1, 2024. . The bonds sold for $386,303 and mature in
Appling Enterprises issued 10% bonds with a face amount of $420,000 on January 1, 2024. . The bonds sold for $386,303 and mature in 2043 (20 years). For bonds of similar risk and maturity the market yield was 11% Interest is paid semiannually on June 30 and December 31. Appling determines interest expense at the effective rate. Appling elected the option to report these bonds at their fair value. The fair values of the bonds at the end of each quarter during 2024 as determined by their market values in the over-the-counter market were the following: March 31 June 30 September 30 December 311 $410,000 395,000 389,000 396,000 General (risk-free) interest rates did not change during 2024. Required: 1. By how much will Appling's comprehensive income be increased or decreased by the bonds (ignoring taxes) in the March 31 quarterly financial statements? 2. By how much will Appling's comprehensive income be increased or decreased by the bonds (ignoring taxes) in the June 30 quarterly financial statements? 3. By how much will Appling's comprehensive income be increased or decreased by the bonds (ignoring taxes) in the September 30 quarterly financial statements? 4. By how much will Appling's comprehensive income be increased or decreased by the bonds (ignoring taxes) in the December 31 annual financial statements? Note: For all requirements, do not round your intermediate calculations. Round your final answers to the nearest whole dollar. 1. Appling's comprehensive income will be by 2. Appling's comprehensive income will be by 3. Appling's comprehensive income will be by 4. Appling's comprehensive income will be by
Step 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