velue: 25.00 polnts PB10-4 Comparing Bonds Issued at Par, Discount, and Premium

Question

velue: 25.00 polnts PB10-4 Comparing Bonds Issued at Par, Discount, and Premium [LO 10-3] Marshalls Corporation completed a $550,000, 6 percent bond issue on January 1, 2015. The bonds pay interest each December 31 and mature 10 years from January 1, 2015 Required 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 were issued Case A (Issued at 100) Case B (at 95) Case C (at 105) January 1, 2015-Financial statements a. Bonds Payable b. Unamortized Premium (or discount) c Carrying Value References eBook & Resources Worksheet Difficulty: 2 Medium ype here to search oe @@.

Explanation / Answer

Case A Case B Case C Bond payable 550000 550000 550000 Unamortized premium (or Discount) 0 -27500 27500 Carrying Value 550000 522500 577500 Carrying Value Bond payable Carriying Value -Bond Payable Case A 550000*1 550000 550000 0 At Face Value Case B 550000*.95 522500 550000 -27500 Discount Case C 550000*1.05 577500 550000 27500 Premium

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