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
