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Sikes Corporation, whose annual accounting period ends on December 31, Issued the following bonds: Date of bonds: January 1, 2021 Maturity amount and date: $220,000
Sikes Corporation, whose annual accounting period ends on December 31, Issued the following bonds: Date of bonds: January 1, 2021 Maturity amount and date: $220,000 due in 10 years (December 31, 2030) Interest 10 percent per year payable each December 31 Date Issued: January 1, 2021 Required: 1. For each of the three independent cases that follow, provide the amounts to be reported on the January 1, 2021, financial statements immediately after the bonds are issued. TIP: See Exhibit 10.6 for an illustration distinguishing Bonds Payable from their carrying value. (Deductions should be indicated by a minus sign.) Answer is complete but not entirely correct. January 1, 2021Financial statements: Case A Case B Case C (AT 100) (At 95) (At 103) a. Bonds payable $ 220,000 $ 220,000 $ 220,000 b. Unamortized premium (or discount) 0 88 22.000 c. Carrying value $ 220,000 $ 93,3763 $ 93,376
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