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I was wondering if there is any way you guys could help me figure out Net Bonds Payable. Problem 14-2 Effective interest; financial statement effects
I was wondering if there is any way you guys could help me figure out Net Bonds Payable.
Problem 14-2 Effective interest; financial statement effects [L014-2] On January 1, 2018, Baddour, Inc., issued 12% bonds with a face amount of $161 million. The bonds were priced at $140.9 million to yield 14%. Interest is paid semiannually on June 30 and December 31. Baddour's fiscal year ends September 30. Required 1. What amount(s) related to the bonds would Baddour report in its balance sheet at September 30, 2018? 2. What amount(s) related to the bonds would Baddour report in its income statement for the year ended September 30, 2018? 3. What amount(s) related to the bonds would Baddour report in its statement of cash flows for the year ended September 30, 2018? In which section(s) should the amount(s) appear? (For all requirements, Enter your answers in whole dollars.) Answer is not complete. Net bonds payable Interest payable Interest expense for fiscal $4,830,000 $ 14,801,605 $140,900,000Inflow from financing activities $ 9,660,000Outflow from operating activities 2. 2018 3.Sale of bonds Cash interest paidStep by Step Solution
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