E-Tech Initiatives Limited plans to issue $500,000, 10-year, 4 percent bonds. Interest is payable annually on December 31. All of the bonds will be issued on January 1, 2019. Show how the bonds would be reported on the January 2, 2019, balance sheet if they are issued at 97. (Deductions should be indicated by a minus sign.) X Answer is complete but not entirely correct. E-TECH INITIATIVES LIMITED Rectangular Balance Sheet (partial) As of January 2, 2019 Long-Term Liabilities Bonds Payable 2$ 500,000 Discount on Bonds Payable 1,500 X Carrying Value 501,500
E-Tech Initiatives Limited plans to issue $500,000, 10-year, 4 percent bonds. Interest is payable annually on December 31. All of the bonds will be issued on January 1, 2019. Show how the bonds would be reported on the January 2, 2019, balance sheet if they are issued at 97. (Deductions should be indicated by a minus sign.) X Answer is complete but not entirely correct. E-TECH INITIATIVES LIMITED Rectangular Balance Sheet (partial) As of January 2, 2019 Long-Term Liabilities Bonds Payable 2$ 500,000 Discount on Bonds Payable 1,500 X Carrying Value 501,500
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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I've also tried 1,500
1,000 and 2,000.
The 15,000 answer I got from here and it still shows as incorrect
Transcribed Image Text:E-Tech Initiatives Limited plans to issue $500,000, 10-year, 4 percent bonds. Interest is payable annually on December 31. All
of the bonds will be issued on January 1, 2019. Show how the bonds would be reported on the January 2, 2019, balance sheet
if they are issued at 97. (Deductions should be indicated by a minus sign.)
X Answer is complete but not entirely correct.
E-TECH INITIATIVES LIMITED
Rectangular Snip
Balance Sheet (partial)
As of January 2, 2019
Long-Term Liabilities
Bonds Payable
2$
500,000
Discount on Bonds Payable
1,500
Carrying Value
2$
501,500
Transcribed Image Text:E-Tech Initiatives Limited plans to issue $500,000, 10-year, 4 percent bonds. Interest is payable annually on December 31. All
of the bonds will be issued on January 1, 2019. Show how the bonds would be reported on the January 2, 2019, balance sheet
if they are issued at 97. (Deductions should be indicated by a minus sign.)
Answer is complete but not entirely correct.
E-TECH INITIATIVES LIMITED
Rectangular Snip
Balance Sheet (partial)
As of January 2, 2019
Long-Term Liabilities
Bonds Payable
V IS
500,000
Discount on Bonds Payable
15,000 X
Carrying Value
515,000
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