Most Solutions, Incorporated, issued 11% bonds, dated January 1, with a face amount of $400 million on January 1, 2024. The bond mature in 2034 (10 years). For bonds of similar risk and maturity the market yield is 13%. Interest expense is recorded at the effecti interest rate. Interest is paid semiannually on June 30 and December 31. Most recorded the sale as follows: January 1, 2024 Cash (price) Discount on bonds (difference) Bonds payable (face amount) General Journal Debit 355,927,220 44,072,780 Answer is not complete. Cash inflow from financing activities Cash outflow from operating activities Credit Required: What would be the amount(s) related to the bonds that Most would report in its statement of cash flows for the year ended Decem 31, 2024? Note: Cash outflows should be indicated with a minus sign. Enter your answers in whole dollars and not in millions. 400,000,000
Most Solutions, Incorporated, issued 11% bonds, dated January 1, with a face amount of $400 million on January 1, 2024. The bond mature in 2034 (10 years). For bonds of similar risk and maturity the market yield is 13%. Interest expense is recorded at the effecti interest rate. Interest is paid semiannually on June 30 and December 31. Most recorded the sale as follows: January 1, 2024 Cash (price) Discount on bonds (difference) Bonds payable (face amount) General Journal Debit 355,927,220 44,072,780 Answer is not complete. Cash inflow from financing activities Cash outflow from operating activities Credit Required: What would be the amount(s) related to the bonds that Most would report in its statement of cash flows for the year ended Decem 31, 2024? Note: Cash outflows should be indicated with a minus sign. Enter your answers in whole dollars and not in millions. 400,000,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Most Solutions, Incorporated, issued 11% bonds, dated January 1, with a face amount of $400 million on January 1, 2024. The bond
mature in 2034 (10 years). For bonds of similar risk and maturity the market yield is 13%. Interest expense is recorded at the effecti
interest rate. Interest is paid semiannually on June 30 and December 31. Most recorded the sale as follows:
January 1, 2024
General Journal
Cash (price)
Discount on bonds (difference)
Bonds payable (face amount)
Debit
355,927,220
44,072,788
Cash inflow from financing activities
Cash outflow from operating activities
Credit
400,000,000
Required:
What would be the amount(s) related to the bonds that Most would report in its statement of cash flows for the year ended Decem
31, 2024?
Note: Cash outflows should be indicated with a minus sign. Enter your answers in whole dollars and not in millions.
Answer is not complete.
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