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Novay_Z [31]
3 years ago
10

On January 1, 2018, Baddour, Inc., issued 10% bonds with a face amount of $168 million. The bonds were priced at $147.2 million

to yield 12%. Interest is paid semiannually on June 30 and December 31. Baddour’s fiscal year ends September 30. Required: 1. What amount(s) related to the bonds would Baddour report in its balance sheet at September 30, 2018? 2. What amount(s) related to the bonds would Baddour report in its income statement for the year ended September 30, 2018? 3. What amount(s) related to the bonds would Baddour report in its statement of cash flows for the year ended September 30, 2018? In which section(s) should the amount(s) appear?
Business
1 answer:
bagirrra123 [75]3 years ago
7 0

Answer:

(A)Balance sheet

Bonds at September 30th

Bonds Payable      168,000,000

Discount on Bonds  (20,152,000)

Interest Payable       12,600,000

Net                          160,448,000

(B) Income Statment

Interest Expense 13,248,000

(C)Cash Flow Statment

Financing

Cash generate for Bonds issued 147,200,000

Explanation:

Jan 1st, 2018 168,000,000 face value

Issed at 147.2M for an effective rate of 12%

Discount of 20.8M

Bonds at September 30th

<em>accrued interest expense:</em> 147,200,000 x 12% x 9/12 = 13,248,000

<em>interest payable: </em>168,000,000 x 10% x 9/12 = 12,600,000

<em>amortization of Discount:</em> 648,000

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zhenek [66]

Answer:

The answer is letter B.

Explanation:

Planned investment will exceed saving

5 0
2 years ago
On January 1, a company issues bonds dated January 1 with a par value of $380,000. The bonds mature in 5 years. The contract rat
Pavlova-9 [17]

Answer:

See explanation

Explanation:

Selling Price of Bonds =396,210

                                  Journal Entry

Date        Account Title and Explanation        Debit       Credit

1 Jan      Cash                                                $396,210  

                        Bond payable                                           $380,000

                        Premium on bond payable                       $ 16,210  

               (To record issuance of bond)

Working

Premium On Bonds Payable = Selling Price of Bonds - Value of Bonds

= $396,210 - $380,000 = $ 16,210  

Interest payment:

Semi-annual interest = 7%× 380,000× 1/2 =13,300

Date        Account Title and Explanation        Debit       Credit

June 30    Bond interest expense                  $13,300                              

                        Cash                                                           $13,300

               (To record semi annual interest paid on bond)

4 0
2 years ago
Diversification is important in investing because…
Airida [17]
Well I look up the answer it c.
6 0
3 years ago
Bardell, Inc. prepared its statement of cash flows for the year. The following information is taken from that statement: Net cas
sladkih [1.3K]

Answer:

The Net Cash <em>used</em> in Financing activities is $30,800

Explanation:

<em>Step 1 Determine the Movement in Cash during the period.</em>

Movement = Ending Cash Balance - Beginning Cash  Balance \

                  = 18,200 - 11,600

                  = 6,600 (inflow)

<em>Step 2 Determine the Cash flow in Financing Activities </em>

<u>Cash flow statement for the year</u>

Cash flow from Operating Activities                                              $29,000

Net Cash flow from Investing Activities                                          $ 8,400

Net Cash flow from Financing Activities (Balancing figure)        ($30,800)

Movement in Cash during the year                                                 $6,600

Therefore, The Net Cash used in Financing activities is $30,800

7 0
2 years ago
Which housing option gives you more freedom and more responsibility?.
Vladimir [108]

Answer:

Owning housing option gives you more freedom and more responsibilities.

Explanation:

Owning a house has the following benefits:

• more freedom

• more responsibilities

• lower costs in long-term high appreciation value

Renting housing option factors are as

follows:

• less freedom

• less responsibilities

higher costs in long-term

• more flexibility

As per the above question,

6 0
2 years ago
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