Analyzing and Reporting Financial Statement Effects of Bond TransactionsWinston Inc. reports financial statements each December 31 and issues $400,000 of 9%, 15-year bonds dated May 1, 2017, with interest payments on October 31 and April 30. Assuming the bonds are sold at par on May 1, 2017, complete the financial statement effects template to reflect the following events: (a) bond issuance, (b) the first semiannual interest payment, and (c) retirement of $150,000 of the bonds at 102 on November 1, 2017. Use negative signs with answers, when appropriate. Balance Sheet Transaction Cash Asset + Noncash Assets = Liabilities + Contributed Capital + Earned Capital (a) Answer ____ Answer _ Answer _ Answer _ Answer (b) Answer Answer _ Answer _ Answer _ Answer (c) Answer Answer _ Answer _ Answer _ Answer Income Statement Revenue - Expenses = Net Income Answer Answer Answer Answer Answer Answer Answer Answer _ Answer ____

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Analyzing and Reporting Financial Statement Effects of Bond Transactions
Winston Inc. reports financial statements each December 31 and issues $400,000 of 9%, 15-year bonds dated May 1, 2017, with interest payments on October 31 and April 30. Assuming the bonds are sold at par on May 1, 2017, complete the financial statement effects template to reflect the following events: (a) bond issuance, (b) the first semiannual interest payment, and (c) retirement of $150,000 of the bonds at 102 on November 1, 2017.

Use negative signs with answers, when appropriate.

	Balance Sheet
Transaction	Cash Asset	+	Noncash Assets	=	Liabilities	+	Contributed Capital	+	Earned Capital
(a)	Answer ________		Answer _________		Answer _________		Answer _________		Answer ________
(b)	Answer ________		Answer _________		Answer _________		Answer _________		Answer ________
(c)	Answer ________		Answer _________		Answer _________		Answer _________		Answer ________

Income Statement
Revenue	-	Expenses	=	Net Income
Answer ________		Answer ________		Answer ________
Answer ________		Answer ________		Answer ________
Answer ________		Answer _________		Answer ________

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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