{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-05-21T23:13:42-04:00", "answer_date": "2024-05-21 23:13:42", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "1480215", "url": "\/study-help\/questions\/on-the-last-day-of-its-fiscal-year-ending-december-1480215", "question_creation_date_js": "2024-05-21T23:13:42-04:00", "question_creation_date": "May 21, 2024 11:13 PM", "meta_title": "[Solved] On the last day of its fiscal year ending | SolutionInn", "meta_description": "Answer of - On the last day of its fiscal year ending December 31, 2024, the Safe & Reliable (S&R) Glass Company completed two fin | SolutionInn", "meta_keywords": "day,fiscal,year,ending,december,31,2024,safe,reliable,s,glass,company", "question_title_h1": " On the last day of its fiscal year ending December 31, 2024, the Safe & Reliable (S&R) Glass Company completed two financing arrangements. The", "question_title": " On the last day of its fiscal year ending December 31,", "question_title_for_js_snippet": "On the last day of its fiscal year ending December 31, 2024, the Safe Reliable (S R) Glass Company completed two financing arrangements The funds provided by these initiatives will allow the company to expand its operations 1 S R issued 8 stated rate bonds with a face amount of $100 million The bonds mature on December 31, 2044 (20 years) The market rate of interest for similar bond issues was 9 (4 5 semiannual rate) Interest is paid semiannually (4 ) on June 30 and December 31, beginning on June 30, 2025 2 The company leased two manufacturing facilities Lease A requires 20 annual lease payments of $200,000 beginning on January 1, 2025 Lease B also is for 20 years, beginning January 1, 2025 Terms of the lease require 17 annual lease payments of $220,000 beginning on January 1, 2028 Generally accepted accounting principles require both leases to be recorded as liabilities for the present value of the scheduled payments Assume that a 10 interest rate properly reflects the time value of money for the lease obligations Required What amounts will appear in S R's December 31, 2024, balance sheet for the bonds and for the leases Note Do not round intermediate calculations Round your final answers to nearest whole dollar amount Use tables, Excel, or a financial calculator (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Answer is complete but not entirely correct Bond liability $ 54,372,875 Lease A liability $ 1,845,184 x Lease B liability $ 2,147,281 x", "question_description": "\"image", "transcribed_text": "On the last day of its fiscal year ending December 31, 2024, the Safe & Reliable (S&R) Glass Company completed two financing arrangements. The funds provided by these initiatives will allow the company to expand its operations. 1. S&R issued 8% stated rate bonds with a face amount of $100 million. The bonds mature on December 31, 2044 (20 years). The market rate of interest for similar bond issues was 9% (4.5% semiannual rate). Interest is paid semiannually (4%) on June 30 and December 31, beginning on June 30, 2025. 2. The company leased two manufacturing facilities. Lease A requires 20 annual lease payments of $200,000 beginning on January 1, 2025. Lease B also is for 20 years, beginning January 1, 2025. Terms of the lease require 17 annual lease payments of $220,000 beginning on January 1, 2028. Generally accepted accounting principles require both leases to be recorded as liabilities for the present value of the scheduled payments. Assume that a 10% interest rate properly reflects the time value of money for the lease obligations. Required: What amounts will appear in S&R's December 31, 2024, balance sheet for the bonds and for the leases? Note: Do not round intermediate calculations. Round your final answers to nearest whole dollar amount. Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Answer is complete but not entirely correct. Bond liability $ 54,372,875 Lease A liability $ 1,845,184 x Lease B liability $ 2,147,281 x", "related_book": { "title": "Intermediate Accounting", "isbn": "1264134525, 9781264134526", "edition": "11th Edition", "authors": "David Spiceland", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/2022\/04\/62500bf659d99_11062500bf616e16.jpg", "uri": "\/textbooks\/intermediate-accounting-11th-edition-9781264134526", "see_more_uri": "\/textbooks\/business-income-tax-3316" }, "free_related_book": { "isbn": "B0C2RH7GVC", "uri": "\/textbooks\/getting-started-with-african-grey-parrots-the-complete-african-grey-parrot-handbook-for-new-pet-owners-1st-edition-979-8392182527-243888", "name": "Getting Started With African Grey Parrots The Complete African Grey Parrot Handbook For New Pet Owners", "edition": "1st Edition" }, "question_posted": "2024-05-21 23:13:42", "see_more_questions_link": "\/study-help\/questions\/business-banking-2021-September-12", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/because-of-excessive-pollution-on-the-momiss-river-the-state", "description": "Because of excessive pollution on the Momiss River, the state of Momiss is going to build pollution control stations. 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