Please show all calculations for a, b, and c.

other comprehensive income. How would Eskew, Inc.'s December 31, 2018, financial state- Following is a summary of the Company's borrowings as reported in note 5 to the firm's 10-K. the payment on thal dale). Assume that the fair value adjustment account for the entire issue has a debit balance of $15,000 as of that date. Hint: Sixty percent of the outstanding bonds were Suppose fair value adjustments of bond values were not posted to net income, but rather to Interpreting Debt Footnotes on Interest Rates and Expense CVS Health Corp. discloses the following footnote in its 10-K relating to its debt: retired in this transaction. ments change? In millions 2017 2016 $ 1,276 2,250 1,250 2.750 1.750 550 1.250 1,500 Commercial paper ........ 1.9% senior notes due 2018 2.25% senior notes due 2018. 2.25% senior notes due 2019. g senior notes due 2020. 125% senior notes due 2021 4.125% senior notes due 2021 2.75% senior notes due 2022 3.5% senior notes due 2022. 4750 senior notes due 2022 4% senior notes due 2023 9375 senior notes due 2024 3.375% se 5 senior notes due 2024 3.875% senior notes due 2025. 2.875% senior 6.25% senior notes due 2027 3.25% senior exchange debentures due 2035. 4.875% senior notes due 2035 6.125% senior notes due 2039 399 1.250 650 299 2,828 1.750 372 1 652 477 $ 1,874 2,250 1,250 850 2.750 1,750 550 1.250 1,500 399 1,250 650 299 2,828 1,750 372 1 652 477 senior notes due 2026. continued Dom aiva BOVISOd sn o and Analyzing Liabilities Cambridge Business Publisher continued from previous page 2017 2016 In millions 133 750 3,500 670 43 5.75% senior notes due 2041 5.3% senior notes due 2043 5.125% senior notes due 2045 Capital lease obligations Other Total debt principal ... Debt premiums Debt discounts and deferred financing costs 133 750 3,500 648 20 27,728 03 27,170 28 (196) 27,002 (228 27,531 (1,874 Loss Short-term debt (commercial paper) Current portion of long-term debt Long-term debt (1.276) (3,545) $22,181 $25,615 CVS also discloses that its interest expense was $1.04 billion in 2017, after deducting capitalized interest of $8 million. It paid interest of $1.07 billion. REQUIRED What was the average interest rate on CVS debt in 2018? b Does your computation in part a seem reasonable given the disclosure relating to specific bom issues? Explain Why can the amount of interest paid be different from the amount of interest expense record in the income statement? Recording and Assessing the Effects of Bond Financing (with Accrued Interest) Petroni, Inc., which closes its books on December 31, is authorized to issue $800,000 of 98,3 year bonds dated March 1, 2019, with interest payments on September 1 and March 1. REQUIRED Assuming that the bonds were sold at 100 plus accrued interest on July 1, 2019, prepare the ne sary journal entries, post the journal entries to their respective T-accounts, and record each train tion in the financial statement effects template. linum other comprehensive income. How would Eskew, Inc.'s December 31, 2018, financial state- Following is a summary of the Company's borrowings as reported in note 5 to the firm's 10-K. the payment on thal dale). Assume that the fair value adjustment account for the entire issue has a debit balance of $15,000 as of that date. Hint: Sixty percent of the outstanding bonds were Suppose fair value adjustments of bond values were not posted to net income, but rather to Interpreting Debt Footnotes on Interest Rates and Expense CVS Health Corp. discloses the following footnote in its 10-K relating to its debt: retired in this transaction. ments change? In millions 2017 2016 $ 1,276 2,250 1,250 2.750 1.750 550 1.250 1,500 Commercial paper ........ 1.9% senior notes due 2018 2.25% senior notes due 2018. 2.25% senior notes due 2019. g senior notes due 2020. 125% senior notes due 2021 4.125% senior notes due 2021 2.75% senior notes due 2022 3.5% senior notes due 2022. 4750 senior notes due 2022 4% senior notes due 2023 9375 senior notes due 2024 3.375% se 5 senior notes due 2024 3.875% senior notes due 2025. 2.875% senior 6.25% senior notes due 2027 3.25% senior exchange debentures due 2035. 4.875% senior notes due 2035 6.125% senior notes due 2039 399 1.250 650 299 2,828 1.750 372 1 652 477 $ 1,874 2,250 1,250 850 2.750 1,750 550 1.250 1,500 399 1,250 650 299 2,828 1,750 372 1 652 477 senior notes due 2026. continued Dom aiva BOVISOd sn o and Analyzing Liabilities Cambridge Business Publisher continued from previous page 2017 2016 In millions 133 750 3,500 670 43 5.75% senior notes due 2041 5.3% senior notes due 2043 5.125% senior notes due 2045 Capital lease obligations Other Total debt principal ... Debt premiums Debt discounts and deferred financing costs 133 750 3,500 648 20 27,728 03 27,170 28 (196) 27,002 (228 27,531 (1,874 Loss Short-term debt (commercial paper) Current portion of long-term debt Long-term debt (1.276) (3,545) $22,181 $25,615 CVS also discloses that its interest expense was $1.04 billion in 2017, after deducting capitalized interest of $8 million. It paid interest of $1.07 billion. REQUIRED What was the average interest rate on CVS debt in 2018? b Does your computation in part a seem reasonable given the disclosure relating to specific bom issues? Explain Why can the amount of interest paid be different from the amount of interest expense record in the income statement? Recording and Assessing the Effects of Bond Financing (with Accrued Interest) Petroni, Inc., which closes its books on December 31, is authorized to issue $800,000 of 98,3 year bonds dated March 1, 2019, with interest payments on September 1 and March 1. REQUIRED Assuming that the bonds were sold at 100 plus accrued interest on July 1, 2019, prepare the ne sary journal entries, post the journal entries to their respective T-accounts, and record each train tion in the financial statement effects template. linum