Sikes Corporation, whose annual accounting period ends on December 31, issued the following bonds: Date of bonds: January 1, 2018

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Sikes Corporation, whose annual accounting period ends on December 31, issued the following bonds: Date of bonds: January 1, 2018 Maturity amount and date: $300,000 due in 10 years (December 31, 2027) Interest: 10 percent per year payable each December 31 Date issued: January 1, 2018 Required: For each of the three independent cases that follow, provide the amounts to be reported on the January 1, 2018, financial statements immediately after the bonds are issued. TIP: See Exhibit 10.5 for an illustration distinguishing Bonds Payable from their carrying value. (Deductions should be indicated by a minus sign.)

Lavinia Carroll · Accepted Answer

Case A (issued at 100)       Case B(at 97)      Case C(at 101)$300,000                             $291,000               $303,000The financial statements for Case ALong term liabilities: Bonds payable $300,000The financial statements for Case BLong term liabilities:Bonds payable $300,000Unamortized discount $9,000 The financial statements for Case CLong term liabilities:Bonds payable $300,000Unamortized premium $3,000

Lavinia Carroll · Answer

Question in order:See the first image attachedAnswer and Explanation:Reported amount as of 1, January 2018 after bonds were issued is as below                                        CASE A             CASE B             CASE C                                        Issued at 100    Issued at 95     issued at 103a. Bonds Payable           $130,000          $130,000          $130,000b. Discount Premium     $0                      $6,500              $3,900                                                                   Discount            Premium                                                                   130,000×(100    130,000×(100-                                                                    -95)⁰/₀                103)⁰/₀c. Carrying value             $130,000          $123,500           $133,900payable bonds would be the maturity amount or face value of bonds. The bonds payable would remain same, that is, $130,000 in each case.In case B, the discount is calculated because the bonds are issued at a price which is less than the face valuein case C, The premium is calculated when the bond are issued at a price that is more than the face valueCarrying value will be calculated by deducting the discount from the bond s payable or by adding the premium in the bonds payable

Lavinia Carroll · Answer

Cis te correct i think i c idk but i think it is c

Lavinia Carroll · Answer

Wite quickly without over thinking .

Alize Kuhn

Sikes Corporation, whose annual accounting period ends on December 31, issued the following bonds: Date of bonds: January 1, 2018

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