Issuing Bonds

Cyber Tech Inc. produces and distributes fiber optic cable for use by telecommunications companies. Cyber Tech Inc. issued $75,750,000 of 25-year, 8% bonds on March 1 at their face amount, with Interest payable on March 1 and September 1. The fiscal year of the company is the calendar year.

Illustrate the effects on the accounts and financial statements of recording the following selected transactions for the current year. If no account or activity is affected, select "No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts. Round your answers to the nearest dollar.

Mar. 1. Issued the bonds for cash at their face amount.

Financial Statement Effects

		Balance Sheet
	Assets	=	Liabilities	+	Stockholders' Equity
Bonds payableCashNo effectCash	=	Bonds payableInterest payableNo effectBonds payable	+	Capital stockRetained earningsNo effectNo effect
Mar. 1.	fill in the blank 4		fill in the blank 5		fill in the blank 6
Statement of Cash Flows		Income Statement
FinancingInvestingOperatingNo effectFinancing	fill in the blank 8		Interest expenseNet incomeSalesNo effectNo effect	fill in the blank 10

Sept. 1. Paid the interest on the bonds.

Financial Statement Effects

		Balance Sheet
	Assets	=	Liabilities	+	Stockholders' Equity
Accounts payableCashNo effectCash	=	Bonds payableInterest payableNo effectNo effect	+	Capital stockRetained earningsNo effectRetained earnings
Sept. 1.	fill in the blank 14		fill in the blank 15		fill in the blank 16
Statement of Cash Flows		Income Statement
FinancingInvestingOperatingNo effectOperating	fill in the blank 18		Interest expenseSales discountsSalesNo effectInterest expense	fill in the blank 20

Dec. 31. Recorded accrued interest for four months.

Financial Statement Effects

		Balance Sheet
	Assets	=	Liabilities	+	Stockholders' Equity
CashInterest payableNo effectNo effect	=	Bonds payableInterest payableNo effectInterest payable	+	Capital stockRetained earningsNo effectRetained earnings
Dec. 31.	fill in the blank 24		fill in the blank 25		fill in the blank 26
Statement of Cash Flows		Income Statement
FinancingInvestingOperatingNo effectNo effect	fill in the blank 28