Boatright issued 6.00%stated rate bonds with a face amount of $215million. The bonds mature on December31,2041(20years) .The market rate of interest for similar bond issues was 8.00% (4.00% semiannual rate). Interest is paid semiannually(3.00%) on June30 and December31,beginning on June30,2025 .The company leased two manufacturing facilities. Lease A requires 10 annual lease payments of $53,000 beginning on January 1,2025.Lease B also is for10 years, beginning January 1,2025.Terms of the lease require seven annual lease payments of $64,500beginning on January 1,2028.Accounting standards require both leases to be recorded as liabilities for the present value of the scheduled payments. Assume that an 8.00%interest rate properly reflects the time value of money for the lease obligations. Required: What amounts will appear in Boatright's December 31,2024,balance sheet for the bonds and for the leases? Note: Use tables, Excel, or a financial calculator. Enter your answer in whole dollars. (FV of $1,PV of $1,FVA of $ ,PVA of $1,FVAD of $ 1 and PVAD of $ 1)\table[[Bond liability,], [Lease A liability,], [Lease B liability, 9:50 AM
Boatright issued 6.00%stated rate bonds with a face amount of $215million. The bonds mature on December31,2041(20years) .The market rate of interest for similar bond issues was 8.00% (4.00% semiannual rate). Interest is paid semiannually(3.00%) on June30 and December31,beginning on June30,2025 .The company leased two manufacturing facilities. Lease A requires 10 annual lease payments of $53,000 beginning on January 1,2025.Lease B also is for10 years, beginning January 1,2025.Terms of the lease require seven annual lease payments of $64,500beginning on January 1,2028.Accounting standards require both leases to be recorded as liabilities for the present value of the scheduled payments. Assume that an 8.00%interest rate properly reflects the time value of money for the lease obligations. Required: What amounts will appear in Boatright's December 31,2024,balance sheet for the bonds and for the leases? Note: Use tables, Excel, or a financial calculator. Enter your answer in whole dollars. (FV of $1,PV of $1,FVA of $ ,PVA of $1,FVAD of $ 1 and PVAD of $ 1)\table[[Bond liability,], [Lease A liability,], [Lease B liability, 9:50 AM
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
not use ai please
![Boatright issued
6.00%stated rate bonds with a face amount
of $215million. The bonds mature on
December31,2041(20years)
.The market rate of interest for similar
bond issues was 8.00% (4.00% semiannual
rate). Interest is paid semiannually(3.00%)
on June30
and December31,beginning on June30,2025
.The company leased two manufacturing
facilities. Lease A requires 10
annual lease payments of $53,000
beginning on January 1,2025.Lease B also is
for10
years, beginning January
1,2025.Terms of the lease require seven
annual lease payments of $64,500beginning
on January 1,2028.Accounting standards
require both leases to be recorded as
liabilities for the present value of the
scheduled payments. Assume that an
8.00%interest rate properly reflects the time
value of money for the lease obligations.
Required:
What amounts will appear in Boatright's
December
31,2024,balance sheet for the bonds and for
the leases?
Note: Use tables, Excel, or a financial
calculator. Enter your answer in whole
dollars. (FV of $1,PV of $1,FVA of $
,PVA of $1,FVAD of $
1 and PVAD of $
1)\table[[Bond liability,], [Lease A liability,],
[Lease B liability,
9:50 AM](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F82696ca2-d0f9-4224-9313-a54361e4b080%2Fd41dc533-3618-4097-b11e-99b2fd335a93%2Fjyi7mc7_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Boatright issued
6.00%stated rate bonds with a face amount
of $215million. The bonds mature on
December31,2041(20years)
.The market rate of interest for similar
bond issues was 8.00% (4.00% semiannual
rate). Interest is paid semiannually(3.00%)
on June30
and December31,beginning on June30,2025
.The company leased two manufacturing
facilities. Lease A requires 10
annual lease payments of $53,000
beginning on January 1,2025.Lease B also is
for10
years, beginning January
1,2025.Terms of the lease require seven
annual lease payments of $64,500beginning
on January 1,2028.Accounting standards
require both leases to be recorded as
liabilities for the present value of the
scheduled payments. Assume that an
8.00%interest rate properly reflects the time
value of money for the lease obligations.
Required:
What amounts will appear in Boatright's
December
31,2024,balance sheet for the bonds and for
the leases?
Note: Use tables, Excel, or a financial
calculator. Enter your answer in whole
dollars. (FV of $1,PV of $1,FVA of $
,PVA of $1,FVAD of $
1 and PVAD of $
1)\table[[Bond liability,], [Lease A liability,],
[Lease B liability,
9:50 AM
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