Question
On Jan 1 2016 Baddour Inc issued 10% bonds with a face amount of $160 million. The bonds were priced at $140 million to yield
On Jan 1 2016 Baddour Inc issued 10% bonds with a face amount of $160 million. The bonds were priced at $140 million to yield 12%. Interest is paid semiannually on June 30th and Dec 31st. Baddour's fiscal year ends Sept 30.
1. What amount(s) related to the bonds would Baddour report in its balance sheet at Sept 30, 2016?
2. What amount(s) related to bonds would Baddour report in its income statement for the year ended Sept 30, 2016?
3. What amount(s) related to the bonds would Baddour report inits statement of cash flows for the year ended Sept 30, 2016? Inwhich section would the amount(s) appear?
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