Sikes Corporation, whose annual accounting period ends on December 31, issued the following bonds: Date of bonds: January 1, 2018 Maturity amount and date: $270,000 due in 10 years (December 31, 2027) Interest: 10 percent per year payable each December 31 Date issued: January 1, 2018 Required: 1. For each of the three independent cases that follow, provide the amounts to be reported on the January 1, 2018, financial statements immediately after the bonds are issued. TIP: See Exhibit for anlustration distinguishing Bonds Payable from their carrying value. Case A Case B Case C (At 100) (At 101) January 1, 2018--Financial statements: a. Bonds payable (At 97) 270,000 $ 270,000 b. Unamortized premium (or discount) 0 c. Carrying value 270,000 $ $ $ 270,000

Sikes Corporation, whose annual accounting period ends on December 31, issued the following bonds: Date of bonds: January 1, 2018 Maturity amount and date: $270,000 due in 10 years (December 31, 2027) Interest: 10 percent per year payable each December 31 Date issued: January 1, 2018 Required: 1. For each of the three independent cases that follow, provide the amounts to be reported on the January 1, 2018, financial statements immediately after the bonds are issued. TIP: See Exhibit for anlustration distinguishing Bonds Payable from their carrying value. Case A Case B Case C (At 100) (At 101) January 1, 2018--Financial statements: a. Bonds payable (At 97) 270,000 $ 270,000 b. Unamortized premium (or discount) 0 c. Carrying value 270,000 $ $ $ 270,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Subject: acounting
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