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On March 1, 2021 Baddor Inc issued 10% bonds dated Jan 1, 2021 with a face amount of $120 million. The bonds were priced at
On March 1, 2021 Baddor Inc issued 10% bonds dated Jan 1, 2021 with a face amount of $120 million. The bonds were priced at $140 million (plus accrued interest) to yield 12%. Interest is paid semi annually on June 30 and December 31. Baddor fiscal year ends September 30.
Answer the following:
- What would be the amount(s) related to the bonds that Baddor should report on 9/30/21 balance sheet?
- What would be the amount(s) related to the bonds that Baddor should report on 9/30/21 income statement?
- What would be the amount(s) related to the bonds that Baddor should report on 9/30/21 statement of cash flows?
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