Sikes Corporation, whose annual accounting period ends on December 31, issued the following bonds: Date of bonds: January 1, 2012 Maturity amount and date: $200,000 due in 10 years (December 31, 2021) Interest: 10 percent per year payable each December 31 Date issued: January 1, 2012 Required: 1. Provide the following amounts to be reported on the January 1, 2012, financial statements immediately after the bonds are issued; TIP: See Exhibit 10.5 for an illustration distinguishing Bonds Payable from their carrying value. January 1, 2012- Financial Statement Case A (issued at 100) Case B (issued at 96) Case C (issued at 102) a. Bonds Payable b. Discount c. Carrying Value
Sikes Corporation, whose annual accounting period ends on December 31, issued the following bonds: Date of bonds: January 1, 2012 Maturity amount and date: $200,000 due in 10 years (December 31, 2021) Interest: 10 percent per year payable each December 31 Date issued: January 1, 2012 Required: 1. Provide the following amounts to be reported on the January 1, 2012, financial statements immediately after the bonds are issued; TIP: See Exhibit 10.5 for an illustration distinguishing Bonds Payable from their carrying value. January 1, 2012- Financial Statement Case A (issued at 100) Case B (issued at 96) Case C (issued at 102) a. Bonds Payable b. Discount c. Carrying Value
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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N2.
Transcribed Image Text:Sikes Corporation, whose annual accounting period ends on December 31, issued
the following bonds:
Date of bonds: January 1, 2012
Maturity amount and date: $200,000 due in 10 years
(December 31, 2021)
Interest: 10 percent per year payable each December 31
Date issued: January 1, 2012
Required:
1.
Provide the following amounts to be reported on the January 1, 2012, financial
statements immediately after the bonds are issued; TIP: See Exhibit 10.5 for an
illustration distinguishing Bonds Payable from their carrying value.
January 1, 2012- Financial Statement Case A (issued at 100) Case B (issued at 96)
Case C (issued at 102)
a. Bonds Payable
b. Discount
c. Carrying Value
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