Problem 14-24 (Algo) Accrued interest; effective interest; financial statement effects [Appendix 14A] On March 1, 2024, Baddour, Incorporated, issued 10% bonds, dated January 1, with a face amount of $160 million. • The bonds were priced at $143.75 million (plus accrued interest) to yield 12%. • The price if issued on January 1 would have been $141.00 million. • Interest is paid semiannually on June 30 and December 31. • Baddour's fiscal year ends September 30. Required: 1. to 3. What would be the amount(s) related to the bonds Baddour would report in its balance sheet, income statement and stateme of cash flows for the year ended September 30, 2024? Note: Enter your answers in whole dollars. Negative amounts should be indicated by a minus sign. Balance sheet: Interest payable Bonds payable (net) Income statement: Statement of cash flows:

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 7P: Wilbury Corporation issued 1 million of 13.5% bonds for 985,071.68. The bonds are dated and issued...
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Problem 14-24 (Algo) Accrued interest; effective interest; financial statement effects [Appendix 14A]
On March 1, 2024, Baddour, Incorporated, issued 10% bonds, dated January 1, with a face amount of $160 million.
The bonds were priced at $143.75 million (plus accrued interest) to yield 12%.
• The price if issued on January 1 would have been $141.00 million.
• Interest is paid semiannually on June 30 and December 31.
Baddour's fiscal year ends September 30.
Required:
1. to 3. What would be the amount(s) related to the bonds Baddour would report in its balance sheet, income statement and statement
of cash flows for the year ended September 30, 2024?
Note: Enter your answers in whole dollars. Negative amounts should be indicated by a minus sign.
Balance sheet:
Interest payable
Bonds payable (net)
Income statement:
Statement of cash flows:
Transcribed Image Text:Problem 14-24 (Algo) Accrued interest; effective interest; financial statement effects [Appendix 14A] On March 1, 2024, Baddour, Incorporated, issued 10% bonds, dated January 1, with a face amount of $160 million. The bonds were priced at $143.75 million (plus accrued interest) to yield 12%. • The price if issued on January 1 would have been $141.00 million. • Interest is paid semiannually on June 30 and December 31. Baddour's fiscal year ends September 30. Required: 1. to 3. What would be the amount(s) related to the bonds Baddour would report in its balance sheet, income statement and statement of cash flows for the year ended September 30, 2024? Note: Enter your answers in whole dollars. Negative amounts should be indicated by a minus sign. Balance sheet: Interest payable Bonds payable (net) Income statement: Statement of cash flows:
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