Comparative SFP balances from Forsythe Solutions Corp.: 20X2 62,500 $ Interest payable Bonds payable, 5% Discount...

 

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Comparative SFP balances from Forsythe Solutions Corp.: 20X2 62,500 $ Interest payable Bonds payable, 5% Discount on bonds payable Bonds payable, 6% Discount on bonds payable 8,000,000 196,000 0 0 20X1 49,000 0 20,000,000 603,000 Additional information: • The 5% bonds were issued for $7,800,000. • The 6% bonds were retired for 102. Discount amortization prior to retirement was $54,000. • Interest expense in 20X2 on both bonds was $625,000, including discount amortization. Required: 1. Prepare statement of cash flows items in financing activities related to the bond issuance and retirement. 2. Calculate the amount of cash paid for interest in 20X2. 3. Calculate the gain or loss on bond retirement in 20X2. Comparative SFP balances from Forsythe Solutions Corp.: 20X2 62,500 $ Interest payable Bonds payable, 5% Discount on bonds payable Bonds payable, 6% Discount on bonds payable 8,000,000 196,000 0 0 20X1 49,000 0 20,000,000 603,000 Additional information: • The 5% bonds were issued for $7,800,000. • The 6% bonds were retired for 102. Discount amortization prior to retirement was $54,000. • Interest expense in 20X2 on both bonds was $625,000, including discount amortization. Required: 1. Prepare statement of cash flows items in financing activities related to the bond issuance and retirement. 2. Calculate the amount of cash paid for interest in 20X2. 3. Calculate the gain or loss on bond retirement in 20X2.

Answer rating: 100% (QA)

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