Question
In: Accounting
On January 1, 2021, Baddour, Inc., issued 12% bonds with a face amount of $163 million....
On January 1, 2021, Baddour, Inc., issued 12% bonds with a face amount of $163 million. The bonds were priced at $142.7 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, 2021?
2. What amount(s) related to the bonds would Baddour report in its income statement for the year ended September 30, 2021?
3. What amount(s) related to the bonds would Baddour report in its statement of cash flows for the year ended September 30, 2021? In which section(s) should the amount(s) appear?
Solutions
ekkarill92 answered 1 year agoRelated Solutions
On January 1, 2021, Baddour, Inc., issued 12% bonds with a face amount of $166 million....
On January 1, 2021, Baddour, Inc., issued 12% bonds with a face
amount of $166 million. The bonds were priced at $145.4 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, 2021? 2. What amount(s) related to the bonds
would Baddour report in its income statement for the year ended
September...
On January 1, 2021, Baddour, Inc., issued 10% bonds with a face amount of $168 million....
On January 1, 2021, 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, 2021? 2. What amount(s) related to the bonds
would Baddour report in its income statement for the year ended
September...
On March 1, 2021, Baddour, Inc., issued 12% bonds, dated January 1, with a face amount...
On March 1, 2021, Baddour, Inc., issued 12% bonds, dated January
1, with a face amount of $175 million. The bonds were priced at
$153.6 million (plus accrued interest) to yield 14%. Interest is
paid semiannually on June 30 and December 31. Baddour’s fiscal year
ends September 30.
Required: 1. to 3. What would be the amount(s) related to the
bonds Baddour would report in its balance sheet, income statement
and statement of cash flows for the year ended September...
On January 1, 2018, Baddour, Inc., issued 12% bonds with a face amount of $170 million....
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...
On January 1, 2018, Baddour, Inc., issued 10% bonds with a face amount of $162 million....
On January 1, 2018, Baddour, Inc., issued 10% bonds with a face
amount of $162 million. The bonds were priced at $141.8 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...
On January 1, 2018, Baddour, Inc., issued 10% bonds with a face amount of $160 million....
On January 1, 2018, Baddour, Inc., issued 10% bonds with a face
amount of $160 million. The bonds were priced at $140 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...
On January 1, 2021, Charles, Inc., issued 12% bonds with a face amount of $17 million....
On January 1, 2021, Charles, Inc., issued 12% bonds with a face
amount of $17 million. The bonds were priced at $14 million to
yield 14%. Interest is paid semiannually on June 30 and December
31. Charles’s fiscal year ends September 30.
Required:
1. What amount(s) related to the bonds would Charles report in its
balance sheet at September 30, 2021?
2. What amount(s) related to the bonds would Charles report in its
income statement for the year ended September...
On January 1, 2021, Instaform, Inc., issued 12% bonds with a face amount of $65 million,...
On January 1, 2021, Instaform, Inc., issued 12% bonds with a
face amount of $65 million, dated January 1. The bonds mature in
2040 (20 years). The market yield for bonds of similar risk and
maturity is 14%. Interest is paid semiannually. (FV of $1, PV of
$1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use
appropriate factor(s) from the tables provided.)
Required:
1-a. Determine the price of the bonds at January 1,
2021....
On January 1, 2021, Charles, Inc., issued 12% bonds with a face amount of $17 million....
On January 1, 2021, Charles, Inc., issued 12% bonds with a face
amount of $17 million. The bonds were priced at $14 million to
yield 14%. Interest is paid semiannually on June 30 and December
31. Charles’s fiscal year ends September 30.
Required:
1. What amount(s) related to the bonds would Charles report in its
balance sheet at September 30, 2021?
2. What amount(s) related to the bonds would Charles report in its
income statement for the year ended September...
On January 1, 2021, Instaform, Inc., issued 12% bonds with a face amount of $45 million,...
On January 1, 2021, Instaform, Inc., issued 12% bonds with a
face amount of $45 million, dated January 1. The bonds mature in
2040 (20 years). The market yield for bonds of similar risk and
maturity is 14%. Interest is paid semiannually. (FV of $1, PV of
$1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use
appropriate factor(s) from the tables provided.)
Required:
1-a. Determine the price of the bonds at January 1,
2021....
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