Koby Company issued $300,000 of bonds for $325,000. a. Determine the financial statement effect of the issuance of the bonds. TIP: If a category is not affected by the bond issuance, enter 0 or leave the field blank. If the transaction affects two accounts in the same category, enter the largest amount in the first row. Transaction Bond Issuance Assets 325,000 = 0= Current assets Long-term liabilities Bonds payable m OOO Balance Sheet x *x Liabilities + 300,000 + 300,000 x + x Stockholders' Equity 325,000 x 300,000 x $ 0 0 b. Illustrate how the bonds will be shown on the Koby Company's balance sheet at the issuance date. Revenue 25,000 x 0 0 Income Statement Expenses 0= 0 M Net Income 0 0

Koby Company issued $300,000 of bonds for $325,000. a. Determine the financial statement effect of the issuance of the bonds. TIP: If a category is not affected by the bond issuance, enter 0 or leave the field blank. If the transaction affects two accounts in the same category, enter the largest amount in the first row. b. Illustrate how the bonds will be shown on the Koby Company's balance sheet at the issuance date