value: 4.00 points Marshalls Corporation completed a $510,000, 6 percent bond is

Question

value: 4.00 points Marshalls Corporation completed a $510,000, 6 percent bond issue on January 1, 2015. The bonds interest each December 31 and mature 10 years from January.1, 2015. pa Required: For each of the three independent cases that follow, Provide the following amounts to be reported on th January 1, 2015, financial statements immediately after the bonds were issued: January 1, 2015 -Financial statements a. Bonds Payable b. Unamortized Premium (or discount) c. Carrying Value Case A (Issued at 100) Case B (at 97) Case C (at 103) eBook & Resources eBook: Analyze and record bond liability transactions. Check my work

Explanation / Answer

Workings:

Note: bond is issued at premium if issued at more than face value, bond is issued at discount if issued at less than face value.

carrying value is the issue price.

Case A Case B Case C a Bonds payable 510000 510000 510000 b Unamortised premium or (discount) 0 -15300 15300 c carrying value 510000 494700 525300

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