Below is the detailed liabilities section of Bruns Company, along with a summary of stockholders' equity and
Question:
Below is the detailed liabilities section of Bruns Company, along with a summary of stockholders' equity and current assets. Please answer the following questions.
Accounts payable $1,200,000
Unearned revenue 800,000
Taxes payable 600,000
Current portion of long-term debt 500,000
*8% Bonds payable, $1,000 par 10,000,000
Less: Unamortized discount on bonds 400,000
Long-term note payable 200,000
Total Stockholders' Equity 35,000,000
Current Assets 6,400,000
*Bonds pay interest semiannually and are secured by undeveloped property located beside the company headquarters.
The approximate market value of that property is $12,000,000. The maturity date of the bonds is January 1, 2008.
The company has the right to pay the bondholder the principal and any interest accrued at any time after January 1, 2003.
What is the net amount of bond liability presented on the balance sheet at this time?
Balance SheetBalance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...
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Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
