The following information relates to a bond sinking fund of Sbarro Co. in trust as required by the underwriter: Bond sinking fund, January 1, 2021 8,000,000 Additional investment in 2021 1,200,000 Dividends on investment 450,000 Interest revenue 650,000 Administration costs 400,000 Net gain on the disposal of sinking fund 120,000 securities Carrying amount of bonds payable 15,000,000 How much is the carrying amount of the bond sinking fund on December 31, 2021?

The following information relates to a bond sinking fund of Sbarro Co. in trust as required by the underwriter: Bond sinking fund, January 1, 2021 8,000,000 Additional investment in 2021 1,200,000 Dividends on investment 450,000 Interest revenue 650,000 Administration costs 400,000 Net gain on the disposal of sinking fund 120,000 securities Carrying amount of bonds payable 15,000,000 How much is the carrying amount of the bond sinking fund on December 31, 2021?

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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A company received cash proceeds of $426,525 on a bond issue with a par value of $400,000. The difference between par value and issue price for this bond is recorded as a:
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D4. As of december 31, 2019, Sandy Beach had $9,500,000 in 4.5 percent serial bonds outstanding. Cash of $509,000 is the debt service fund’s only asset as of December 31, 2019, and there are no liabilities. The serial bonds pay interest semiannually on January 1 and July 1, with $500,000 in bonds being retired on each interest payment date. Resources for payment of interest are transferred from the General Fund, and the debt service fund levies property taxes in an amount sufficient to cover principal payments.
Dd.104.