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On March 1, 2018, Baddour, Inc., issued 12% bonds, dated January 1, with a face amount of $161 million. The bonds were priced at $140.7
On March 1, 2018, Baddour, Inc., issued 12% bonds, dated January 1, with a face amount of $161 million. The bonds were priced at $140.7 million (plus accrued interest) to yield 14%. Interest is paid semiannually on June 30 and December 31. Baddours fiscal year ends September 30.
Required 1. to 3. What would be the amount(s) related to the bonds Baddour would report in its balance sheet, income statement and statement of cash flows for the year ended September 30, 2018? (Enter your answers in whole dollars. Negative amounts should be indicated by a minus sign.) Balance sheet: Interest payable Bonds payable (net) Income statement Interest expense Statement of cash flows Financing activities Operating activitiesStep by Step Solution
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