Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Exercise 21-11 (Algo) Bonds; statement of cash flow effects [LO21-3] Most Solutions, Inc., issued 13% bonds, dated January 1, with a face amount of $740

image text in transcribed

Exercise 21-11 (Algo) Bonds; statement of cash flow effects [LO21-3] Most Solutions, Inc., issued 13% bonds, dated January 1, with a face amount of $740 million on January 1, 2021. The bonds mature in 2031 10 years). For bonds of similar risk and maturity the market yield is 15%. Interest expense is recorded at the effective interest rate. Interest is paid semiannually on June 30 and December 31. Most recorded the sale as follows: January 1, 2021 Cash (price) Discount on bonds (difference) Bonds payable (face amount) 664,558,369 75,441,631 740,000,000 Required: What would be the amount(s) related to the bonds that Most would report in its statement of cash flows for the year ended December 31, 2021? (List any cash outflow with a minus sign. Enter your answers in whole dollars.) Answer is complete but not entirely correct. x $ Cash inflow from investing activities Cash inflow from operating activities Cash inflow from financing activities (96,200,000) 664,558,369 X $ x

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Internationale Rechnungslegung IFRS Praxis

Authors: Author

1st Edition

3834909289, 9783834909282

More Books

Students also viewed these Accounting questions

Question

=+What is your personal mission statement?

Answered: 1 week ago