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On the last day of its fiscal year ending December 3 1 , 2 0 2 4 , the Safe & Reliable ( S&R )
On the last day of its fiscal year ending December 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.
S&R issued stated rate bonds with a face amount of $ million. The bonds mature on December years The market rate of interest for similar bond issues was semiannual rate Interest is paid semiannually on June and December beginning on June
The company leased two manufacturing facilities. Lease A requires annual lease payments of $ beginning on January Lease B also is for years, beginning January Terms of the lease require annual lease payments of $ beginning on January Generally accepted accounting principles require both leases to be recorded as liabilities for the present value of the scheduled payments. Assume that a interest rate properly reflects the time value of money for the lease obligations.
Required:
What amounts will appear in S&Rs December 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 $ PV of $ FVA of $ PVA of $ FVAD of $ and PVAD of $
tableBond liability,Lease A liability,Lease B liability,
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