Appling Enterprises issued 10% bonds with a face amount of $530,000 on January 1, 2024 . The bonds sold for $487,478 and mature in 2043 (20 years) • For bonds of similar risk and maturity the market yield was 11% . Interest is paid semiannually on June 30 and December 31. . Appling determines interest expense at the effective rate. • Appling elected the option to report these bonds at their fair value. The fair values of the bonds at the end of each quarter during 2024 as determined by their market values in the over-the-counter market were the following March 31 June 30 $ 520,000 500,000 494,000 501,000 September 30 December 31 General (risk-free) interest rates did not change during 2024. Required: 1. By how much will Appling's comprehensive income be increased or decreased by the bonds (ignoring taxes) in the March 31 quarterly financial statements? 2. By how much will Appling's comprehensive income be increased or decreased by the bonds (ignoring taxes) in the June 30 quarterly financial statements? 3. By how much will Appling's comprehensive income be increased or decreased by the bonds (ignoring taxes) in the September 30 quarterly financial statements? 4. By how much will Appling's comprehensive income be increased or decreased by the bonds (ignoring taxes) in the December 31 annual financial statements? Note: For all requirements, do not round your intermediate calculations. Round your final answers to the nearest whole dollar. 1. Appling's comprehensive income will be 2. Appling's comprehensive income will be 3. Appling's comprehensive income will be 4 Appling's comprehensive income will be by by by by
Appling Enterprises issued 10% bonds with a face amount of $530,000 on January 1, 2024 . The bonds sold for $487,478 and mature in 2043 (20 years) • For bonds of similar risk and maturity the market yield was 11% . Interest is paid semiannually on June 30 and December 31. . Appling determines interest expense at the effective rate. • Appling elected the option to report these bonds at their fair value. The fair values of the bonds at the end of each quarter during 2024 as determined by their market values in the over-the-counter market were the following March 31 June 30 $ 520,000 500,000 494,000 501,000 September 30 December 31 General (risk-free) interest rates did not change during 2024. Required: 1. By how much will Appling's comprehensive income be increased or decreased by the bonds (ignoring taxes) in the March 31 quarterly financial statements? 2. By how much will Appling's comprehensive income be increased or decreased by the bonds (ignoring taxes) in the June 30 quarterly financial statements? 3. By how much will Appling's comprehensive income be increased or decreased by the bonds (ignoring taxes) in the September 30 quarterly financial statements? 4. By how much will Appling's comprehensive income be increased or decreased by the bonds (ignoring taxes) in the December 31 annual financial statements? Note: For all requirements, do not round your intermediate calculations. Round your final answers to the nearest whole dollar. 1. Appling's comprehensive income will be 2. Appling's comprehensive income will be 3. Appling's comprehensive income will be 4 Appling's comprehensive income will be by by by by
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Appling Enterprises issued 10% bonds with a face amount of $530,000 on January 1, 2024
. The bonds sold for $487,478 and mature in 2043 (20 years)
. For bonds of similar risk and maturity the market yield was 11%
• Interest is paid semiannually on June 30 and December 31.
. Appling determines interest expense at the effective rate.
• Appling elected the option to report these bonds at their fair value.
• The fair values of the bonds at the end of each quarter during 2024 as determined by their market values in the over-the-counter
market were the following
March 31
June 30
$ 520,000
500,000
494,000
501,000
September 30
December 31
General (risk-free) interest rates did not change during 2024.
Required:
1. By how much will Appling's comprehensive income be increased or decreased by the bonds (ignoring taxes) in the March 31
quarterly financial statements?
2. By how much will Appling's comprehensive income be increased or decreased by the bonds (ignoring taxes) in the June 30
quarterly financial statements?
3. By how much will Appling's comprehensive income be increased or decreased by the bonds (ignoring taxes) in the September
30 quarterly financial statements?
4. By how much will Appling's comprehensive income be increased or decreased by the bonds (ignoring taxes) in the December 31
annual financial statements?
Note: For all requirements, do not round your intermediate calculations. Round your final answers to the nearest whole dollar.
1 Appling's comprehensive income will be
2. Appling's comprehensive income will be
3 Appling's comprehensive income will be
4 Appling's comprehensive income will be
by
by
by
by
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