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part 2-------------------------------------------------------------------------- The fiscal year ends December 31 for Lake Hamilton Development. To provide funding for its Moonlight Bay project, LHD issued 7% bonds with
part 2--------------------------------------------------------------------------
The fiscal year ends December 31 for Lake Hamilton Development. To provide funding for its Moonlight Bay project, LHD issued 7\% bonds with a face amount of $540,000 on November 1,2024 . The bonds sold for $486,560, a price to yield the market rate of 8%. The bonds mature October 31, 2043 (20 years). Interest is paid semiannually on April 30 and October 31 and is determined using the effective interest method. Required: 1. What amount of interest expense related to the bonds will LHD report in its income statement for the year ending December 31 , 2024? 2. What amount(s) related to the bonds will LHD report in its balance sheet at December 31,2024 ? 3. What amount of interest expense related to the bonds will LHD report in its income statement for the year ending December 31 , 2025 ? 4. What amount(s) related to the bonds will LHD report in its balance sheet at December 31,2025 ? Note: For all requirements, do not round your intermediate calculations. Enter your answers in whole dollars. On January 1, 2024, Baddour, Incorporated, issued 10\%, 12-year bonds with a face amount of $171 million. - The bonds were priced at $150 million to yield 12%. - Interest is paid semiannually on June 30 and December 31. - Baddour's fiscal year ends September 30. Required: 1. What amount(s) related to the bonds would Baddour report in its balance sheet at September 30, 2024? 2. What amount(s) related to the bonds would Baddour report in its income statement for the year ended September 30, 2024? 3. What amount(s) related to the bonds would Baddour report in its statement of cash flows for the year ended September 30 , 2024 ? In which section(s) should the amount(s) appear? Note: For all requirements, enter your answers in whole dollarsStep by Step Solution
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