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Sikes Corporation, whose annual accounting period ends on December 31, Issued the following bonds Date of bonda January 1, 2018 Maturity amount and date: $130,000
Sikes Corporation, whose annual accounting period ends on December 31, Issued the following bonds Date of bonda January 1, 2018 Maturity amount and date: $130,000 due in 10 years (December 31, Interest: 10 percent per year payable each December 31 Date issued: January , 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 AI 100) Case (At 95) Case C (Al 103) January 1, 2018 Financial statements: a. Bonds payable b. Unamortized premium for discount) C. Carrying value EXHIBIT 10.5 Balance Sheet Reporting of Bond Liabilities Bonds issued at a premium dat a premium B onds issued at face value Bonds issued at a discount Bonds Payable Premium on Bonds Payable Carrying Value $100.000 S100,000 7.260 107,260 B onds Payable M L Bonds Payable Discount on Bonds Payable Carrying Value $100,000 (6.624) 99,376
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