Sikes Corporation, whose annual accounting period ends on December 31, issued the following bonds:

Date of bonds: January 1, 2018

Maturity amount and date: $160,000 due in 10 years (December 31, 2027)

Interest: 10 percent per year payable each December 31

Date issued: January 1, 2018

Required:

1. For each of the three independent cases that follow, provide the amounts to be reported on the January 1, 2018, financial statements immediately after the bonds are issued. TIP: See Exhibit 10.5 for an illustration distinguishing Bonds Payable from their carrying value. (Deductions should be indicated by a minus sign.)

		case A	case B	case C
	January 1, 2018 financial statement	(at 100)	(at 95)	(at 103)
a	bonds payable
b	unamortized premium (or discount)
c	carry value

EXHIBIT 10.5 BALANCE SHEET REPORTING OF BOND LIABILITIES

BONDS ISSUED AT A PREMIUM BONDS ISSUED AT FACE VALUE BONDS ISSUED AT A DISCOUNT

bonds payable $100,000 bonds payable $100,000 bonds payable $100,000

premium on bonds payable 7,260 discount on bonds payable. (6,624)

carrying value 107,260 carrying value 93,376