Date of bonds: January 1, 2015 Maturity amount and date: $150,000 due in 10 year

Question

Date of bonds: January 1, 2015 Maturity amount and date: $150,000 due in 10 years (December 31, 2024) Interest: 10 percent per year payable each December 31 Date issued: January 1, 2015 Required: 1. For each of the three independent cases that follow, provide the following amounts to be reported on the January 1, 2015, financial statements immediately after the bonds are issued. TIP: See Exhibit 10.5 for an illustration distinguishing Bonds Payable from their carrying value. (Negative amounts should be indicated with a minus sign.) Case B (at 96) Case C (at 102) Case A January 1, 2015--Financial statements: (issued at 100 a. Bonds payable b. Unamortized premium (or discount) c. Carrying value $ 150,000$ 150,000 S150,000 0 $150,000

Explanation / Answer

Case A Case B Case C Bonds payable 150000 150000 150000 Unamortized premium(discount) 0 -6000 3000 Carrying value 150000 144000 153000

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