Reporting Bonds on the Balance Sheet Yale Corporation issued $6,000 , 8 % ( cash interest payable semiannually on June 30 and December 31) 10-year bonds dated and sold on January 1. Yale amortizes any bond discount or premium using the effective interest amortization method. If the bonds were sold to yield 9%, show how the bonds and any related bond discount or premium would be presented on the balance sheet as of June 30. • Note: Round your answer to the nearest whole dollar. Note: Do not use negative signs with your answers. Liabilities Bonds Payable Balance Sheet Discount on Bonds Payable Bonds Payable, Net + $ ✓ $ June 30 6,000 ✓ 0x 0x
Reporting Bonds on the Balance Sheet Yale Corporation issued $6,000 , 8 % ( cash interest payable semiannually on June 30 and December 31) 10-year bonds dated and sold on January 1. Yale amortizes any bond discount or premium using the effective interest amortization method. If the bonds were sold to yield 9%, show how the bonds and any related bond discount or premium would be presented on the balance sheet as of June 30. • Note: Round your answer to the nearest whole dollar. Note: Do not use negative signs with your answers. Liabilities Bonds Payable Balance Sheet Discount on Bonds Payable Bonds Payable, Net + $ ✓ $ June 30 6,000 ✓ 0x 0x
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Reporting Bonds on the Balance Sheet
Yale Corporation issued $6,000, 8% (cash interest payable semiannually on June 30 and December 31) 10-year bonds dated and sold on January 1. Yale amortizes any bond discount or premium
using the effective interest amortization method. If the bonds were sold to yield 9%, show how the bonds and any related bond discount or premium would be presented on the balance sheet as of
June 30.
• Note: Round your answer to the nearest whole dollar.
• Note: Do not use negative signs with your answers.
Liabilities
Bonds Payable
Balance Sheet
Discount on Bonds Payable
Bonds Payable, Net
+
$
✓
$
June 30
6,000✔
0 x
0 x
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