ond Premium; Bonds payable Transactions Beaufort Vaults Corporation produces and sells burial vaults. On July 1, 20Y3, Beaufort Vaults Corporation issued $25,000,000 of 10-year, 8% bonds at par. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Instructions: 1. Illustrate the effects of the issuance of the bonds on July 1, 20Y3, on the accounts and financial statements. If no account or activity is affected, select "No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts. Statement of Cash Flows Balance Sheet Assets = Liabilities + Stockholders' Equity Cash = Bonds payable + No effect July 1. fill in the blank 4 fill in the blank 5 fill in the blank 6 Statement of Cash Flows Income Statement Financing fill in the blank 8 No effect fill in the blank 10 2. Illustrate the effects of the first semiannual interest payment on December 31, 20Y3, on the accounts and financial statements. If no account or activity is affected, select "No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts. Statement of Cash Flows Balance Sheet Assets = Liabilities + Stockholders' Equity = + Dec. 31. fill in the blank 14 fill in the blank 15 fill in the blank 16 Statement of Cash Flows Income Statement fill in the blank 18 fill in the blank 20 3. Illustrate the effects of the payment of the face value of bonds at maturity on the accounts and financial statements. If no account or activity is affected, select "No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts. Statement of Cash Flows Balance Sheet Assets = Liabilities + Stockholders' Equity = + June 30. fill in the blank 24 fill in the blank 25 fill in the blank 26 Statement of Cash Flows Income Statement fill in the blank 28 fill in the blank 30 4. The selling price of the bonds less face amount of the bonds is called a premium on Bonds payable; the amortization of a discount increases Interest expense, and the amortization of a premium decreases Interest expense. Feedback

ond Premium; Bonds payable Transactions Beaufort Vaults Corporation produces and sells burial vaults. On July 1, 20Y3, Beaufort Vaults Corporation issued $25,000,000 of 10-year, 8% bonds at par. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Instructions: 1. Illustrate the effects of the issuance of the bonds on July 1, 20Y3, on the accounts and financial statements. If no account or activity is affected, select "No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts. Statement of Cash Flows Balance Sheet Assets = Liabilities + Stockholders' Equity Cash = Bonds payable + No effect July 1. fill in the blank 4 fill in the blank 5 fill in the blank 6 Statement of Cash Flows Income Statement Financing fill in the blank 8 No effect fill in the blank 10 2. Illustrate the effects of the first semiannual interest payment on December 31, 20Y3, on the accounts and financial statements. If no account or activity is affected, select "No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts. Statement of Cash Flows Balance Sheet Assets = Liabilities + Stockholders' Equity = + Dec. 31. fill in the blank 14 fill in the blank 15 fill in the blank 16 Statement of Cash Flows Income Statement fill in the blank 18 fill in the blank 20 3. Illustrate the effects of the payment of the face value of bonds at maturity on the accounts and financial statements. If no account or activity is affected, select "No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts. Statement of Cash Flows Balance Sheet Assets = Liabilities + Stockholders' Equity = + June 30. fill in the blank 24 fill in the blank 25 fill in the blank 26 Statement of Cash Flows Income Statement fill in the blank 28 fill in the blank 30 4. The selling price of the bonds less face amount of the bonds is called a premium on Bonds payable; the amortization of a discount increases Interest expense, and the amortization of a premium decreases Interest expense. Feedback

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Bond Premium; Bonds payable Transactions

Beaufort Vaults Corporation produces and sells burial vaults. On July 1, 20Y3, Beaufort Vaults Corporation issued $25,000,000 of 10-year, 8% bonds at par. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year.

Instructions:

1. Illustrate the effects of the issuance of the bonds on July 1, 20Y3, on the accounts and financial statements. If no account or activity is affected, select "No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts.

Statement of Cash Flows	Balance Sheet
Assets	=	Liabilities	+	Stockholders' Equity
Cash	=	Bonds payable	+		No effect
July 1.	fill in the blank 4		fill in the blank 5			fill in the blank 6
Statement of Cash Flows		*Income Statement*
Financing	fill in the blank 8		No effect	fill in the blank 10

2. Illustrate the effects of the first semiannual interest payment on December 31, 20Y3, on the accounts and financial statements. If no account or activity is affected, select "No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts.

Statement of Cash Flows	Balance Sheet
Assets	=	Liabilities	+	Stockholders' Equity
	=		+
Dec. 31.	fill in the blank 14		fill in the blank 15		fill in the blank 16
Statement of Cash Flows		*Income Statement*
	fill in the blank 18			fill in the blank 20

3. Illustrate the effects of the payment of the face value of bonds at maturity on the accounts and financial statements. If no account or activity is affected, select "No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts.

Statement of Cash Flows	Balance Sheet
Assets	=	Liabilities	+	Stockholders' Equity
	=		+
June 30.	fill in the blank 24		fill in the blank 25		fill in the blank 26
Statement of Cash Flows		*Income Statement*
	fill in the blank 28			fill in the blank 30

4. The selling price of the bonds less face amount of the bonds is called a premium on Bonds payable; the amortization of a discount increases Interest expense, and the amortization of a premium decreases Interest expense.

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