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. Identify and analyze the effect of the interest payment on October 1, 2017. nctivity Financing X Accounts Cash Increase, Interest Expense Increase X Statement(s) Balance Sheet only X Feedback low does this entry affect the accounting equation? Ya financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Balance Sheet Income Statement Stockholders' Net Assets Liabilities Equity Revenues Expenses Income No Entry X No Entry v No Entry v Interest Expense v 75,350 V -75,350 V Feedback . On December 31, Brand should record a cash payment of three months' of interest to reflect interest for the period from October 1 to December 31. X

. Identify and analyze the effect of the interest payment on October 1, 2017. nctivity Financing X Accounts Cash Increase, Interest Expense Increase X Statement(s) Balance Sheet only X Feedback low does this entry affect the accounting equation? Ya financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Balance Sheet Income Statement Stockholders' Net Assets Liabilities Equity Revenues Expenses Income No Entry X No Entry v No Entry v Interest Expense v 75,350 V -75,350 V Feedback . On December 31, Brand should record a cash payment of three months' of interest to reflect interest for the period from October 1 to December 31. X

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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2. Identify and analyze the effect of the interest payment on October 1, 2017. Activity Financing X Accounts Cash Increase, Interest Expense Increase X Statement(s) Balance Sheet only X Feedback How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Balance Sheet Income Statement Stockholders' Net Assets Liabilities Equity Revenues Expenses Income No Entry X No Entry v No Entry v Interest Expense v 75,350 V -75,350 V Feedback 3. On December 31, Brand should record a cash payment of three months' of interest to reflect interest for the period from October 1 to December 31. X Feedback 4. Determine the total cash inflows and outflows that occurred on the bonds over the eight-year life. Total cash inflows 1,370,000 Total cash outflows 2,500,250
Transcribed Image Text:2. Identify and analyze the effect of the interest payment on October 1, 2017. Activity Financing X Accounts Cash Increase, Interest Expense Increase X Statement(s) Balance Sheet only X Feedback How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Balance Sheet Income Statement Stockholders' Net Assets Liabilities Equity Revenues Expenses Income No Entry X No Entry v No Entry v Interest Expense v 75,350 V -75,350 V Feedback 3. On December 31, Brand should record a cash payment of three months' of interest to reflect interest for the period from October 1 to December 31. X Feedback 4. Determine the total cash inflows and outflows that occurred on the bonds over the eight-year life. Total cash inflows 1,370,000 Total cash outflows 2,500,250
Bond Transactions Brand Company issued $1,370,000 face value, eight-year, 11% bonds on April 1, 2017, when the market rate of interest was 11%. Interest payments are due every October 1 and April 1. Brand uses a calendar year-end. Required: 1. Identify and analyze the effect of the issuance of the bonds on April 1, 2017. Activity Financing v Accounts Cash Increase, Bonds Payable Increase v Statement(s) Balance Sheet only v Feedback How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Balance Sheet Income Statement Stockholders' Net Assets Liabilities Equity Revenues Expenses Income Cash v 1,370,000 Bonds Payable v 1,370,000 No Entry v No Entry v
Transcribed Image Text:Bond Transactions Brand Company issued $1,370,000 face value, eight-year, 11% bonds on April 1, 2017, when the market rate of interest was 11%. Interest payments are due every October 1 and April 1. Brand uses a calendar year-end. Required: 1. Identify and analyze the effect of the issuance of the bonds on April 1, 2017. Activity Financing v Accounts Cash Increase, Bonds Payable Increase v Statement(s) Balance Sheet only v Feedback How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Balance Sheet Income Statement Stockholders' Net Assets Liabilities Equity Revenues Expenses Income Cash v 1,370,000 Bonds Payable v 1,370,000 No Entry v No Entry v
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