Koby Company issued $300,000 of bonds for $325,000. a. Determine the financial statement effect of the issuance of the bonds. TIP: If a category is not affected by the bond issuance, enter 0 or leave the field blank. If the transaction affects two accounts in the same category, enter the largest amount in the first row. Transaction Bond Issuance Assets 325,000 ✓ 0✓ Current assets Long-term liabilities Bonds payable Balance Sheet 000 Liabilities 300,000 300,000 x x Stockholders Equity $325,000 x 0✔ 0✔ b. Illustrate how the bonds will be shown on the Koby Company's balance sheet at the issuance date. Revenue 300,000 x $ 25,000 x 0✔ 0✓ Income Statement Expenses 0 0 Net Income 0✔ 0✔
Koby Company issued $300,000 of bonds for $325,000. a. Determine the financial statement effect of the issuance of the bonds. TIP: If a category is not affected by the bond issuance, enter 0 or leave the field blank. If the transaction affects two accounts in the same category, enter the largest amount in the first row. Transaction Bond Issuance Assets 325,000 ✓ 0✓ Current assets Long-term liabilities Bonds payable Balance Sheet 000 Liabilities 300,000 300,000 x x Stockholders Equity $325,000 x 0✔ 0✔ b. Illustrate how the bonds will be shown on the Koby Company's balance sheet at the issuance date. Revenue 300,000 x $ 25,000 x 0✔ 0✓ Income Statement Expenses 0 0 Net Income 0✔ 0✔
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Koby Company issued $300,000 of bonds for $325,000.
a. Determine the financial statement effect of the issuance of the bonds.
TIP: if a category is not affected by the bond issuance, enter 0 or leave the field blank. If the
transaction affects two accounts in the same category, enter the largest amount in the first row.
Transaction
Bond Issuance
Assets
325,000 ✓=
050
Current assets
Long-term liabilities
Bonds payable
Balance Sheet
CHINI
Stockholders'
Liabilities + Equity
300,000
300,000 x
x
*
325,000 x
x 300,000 x $
0✔
0✔
Revenue
b. Illustrate how the bonds will be shown on the Koby Company's balance sheet at the issuance date.
25,000 x
Income Statement
0 ✓-
0✔
Expenses
Net
Income
0✔
0✔
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