On 8/1/20, World Series Inc. paid $36 of interest on the bonds and bought back $100 of the bonds with no resulting gain or loss
On 8/1/20, World Series Inc. paid $36 of interest on the bonds and bought back $100 of the bonds with no resulting gain or loss on this repurchase. Note that Bonds Payable and Interest Payable are listed in the Balance Sheet. Below, please record the impact of the interest payment and the bonds' repurchase in the transaction template (in respective tables).
Please fill out these boxes:
for ALL of these boxes, you can choose - which indicates that none of the answers are applicable
Interest Payment part of the transaction:
cash asset box: -100, -64, -36, -21, -15, 15, 21, 36, 64, 100
Non-cash assets box 1: -100, -64, -36, -21, -15, 15, 21, 36, 64, 100
Non-cash assets box 2: Bonds payable, Interest expense, interest payable, prepaid interest, retained earnings
Liabilities box 1:--100, -64, -36, -21, -15
Liabilities box 2: Bonds payable, Interest expense, interest payable, prepaid interest, retained earnings
contrib capital box 1: -100, -64, -36, -21, -15
contrib capital box 2: Bonds payable, Interest expense, interest payable, prepaid interest, retained earnings
earned capital box 1: -100, -64, -36, -21, -15, 15, 21, 36, 64, 100
earned capital box 2: Bonds payable, Interest expense, interest payable, prepaid interest, retained earnings
Revenues box 1: 100, 64, 36, 21, 15
Revenues box 2: Interest expense, interest payable, prepaid interest, retained earnings
Expenses. box 1: 100, 64, 36, 21, 15
Expenses. box 2: Interest expense, interest payable, prepaid interest, retained earnings
Net income: -100, -64, -36, -21, -15
Bonds' Repurchase part of the transaction:
cash asset box: -100, -85, -64, -36, -21, -15, 15, 21, 36, 64, 85, 100
Non-cash assets box 1: -100, -85, -64, -36, -21, -15, 15, 21, 36, 64, 85, 100
Non-cash assets box 2: Additional paid in capital, Bonds payable, Common stock, retained earnings, Treasury stock
Liabilities box 1: -100, -85, -64, -36, -21, -15, 15, 21, 36, 64, 85, 100
Liabilities box 2: Additional paid in capital, Bonds payable, Common stock, retained earnings, Treasury stock
contrib capital box 1: -100, -85, -64, -36, -21, -15, 15, 21, 36, 64, 85, 100
contrib capital box 2: Additional paid in capital, Bonds payable, Common stock, retained earnings, Treasury stock
earned capital box 1: -100, -85, -64, -36, -21, -15, 15, 21, 36, 64, 85, 100
earned capital box 2: Additional paid in capital, Bonds payable, Common stock, retained earnings, Treasury stock
Revenues box 1: -100, -85, -64, -36, -21, -15, 15, 21, 36, 64, 85, 100
Revenues box 2: Bonds repurchase gain, bonds repurchase loss
Expenses. box 1: -100, -85, -64, -36, -21, -15, 15, 21, 36, 64, 85, 100
Expenses. box 2: Bonds repurchase gain, bonds repurchase loss
Net income: -100, -85, -64, -36, -21, -15, 15, 21, 36, 64, 85, 100
On 8/1/20, World Series Inc. paid $36 of interest on the bonds and bought back $100 of the bonds with no resulting gain or loss on this repurchase. Note that Bonds Payable and Interest Payable are listed in the Balance Sheet. Below, please record the impact of the interest payment and the bonds' repurchase in the transaction template (in respective tables). Interest Payment part of the transaction: Bonds' Repurchase part of the transactionStep by Step Solution
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