On January 1, 2021, Baddour, Inc., issued 10%, 12-year bonds with a face amount of $175 million. The bonds were priced at $153 million to yield 12%. Interest is paid semiannually on June 30 and December 31. Baddours fiscal year ends September 30. Required: 1. What amount(s) related to the bonds would Baddour report in its balance sheet at September 30, 2021? 2. What amount(s) related to the bonds would Baddour report in its income statement for the year ended September 30, 2021? 3. What amount(s) related to the bonds would Baddour report in its statement of cash flows for the year ended September 30, 2021? In which section(s) should the amount(s) appear?

On January 1, 2021, NFB Visual Aids issued $750,000 of its 20-year, 10% bonds. The bonds were priced to yield 12%. Interest is payable semiannually on June 30 and December 31. NFB Visual Aids records interest expense at the effective rate and elected the option to report these bonds at their fair value. On December 31, 2021, the fair value of the bonds was $640,000 as determined by their market value in the over-the-counter market. General (risk-free) interest rates did not change during 2021. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

1. Net bonds payable Interest payable 2. Interest expense for fiscal 2021 3. Sale of bonds Cash interest paid Inflow from financing activities Outflow from operating activities No Date General Journal Debit Credit 1 January 01 637, 151 Cash Discount on bonds payable Bonds payable 112,849 750,000 2 June 30 Interest expense Discount on bonds payable Cash 3 December 31 Interest expense Discount on bonds payable Cash 4 December 31 Loss on bonds payable (unrealized, OCI) Fair value adjustment