Chapter 10, Problem 17BE

a.

To determine

Indicate the event that affects the balance sheet, income statement, and statement of cash flows and indicate whether the increases (+), decreases (-), or does not affect (NA) each element of the financial statements.

b.

To determine

Ascertain the carrying value (face value less discount or plus premium) of the bond liability as of December 31, year1.

c.

To determine

Calculate the interest expense paid during the year 1.

d.

To determine

Ascertain the carrying value (face value less discount or plus premium) of the bond liability as of December 31, year 2.

e.

To determine

Calculate the interest expense paid during the year 2.