In: Accounting
On January 1, 2018, Baddour, Inc., issued 12% bonds with a face
amount of $170 million. The bonds were priced at $149.0 million to
yield 14%. 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?
1. Net Bonds Payable | |||
Interest Payable | |||
2. Interest Expense Fiscal Year 2018 | |||
3. Sale of Bonds | |||
Cash Interest Paid | |||