Question: Most Solutions, Inc., issued 10% bonds, dated January 1, with a face amount of $640 million on January 1, 2011. The bonds mature in 2021

Most Solutions, Inc., issued 10% bonds, dated January 1, with a face amount of $640 million on January 1, 2011. The bonds mature in 2021 (10 years). For bonds of similar risk and maturity the market yield is 12%. Interest is paid semiannually on June 30 and December 31. Most recorded the sale as follows:

Required:
What would be the amount(s) related to the bonds that Most would report in its statement of cash flows for the year ended December 31,2011?

January 1, 2011 Cash (price). Discount on bonds (difference) 566,589,440 73,410,560 Bonds payable (face amount) 640,000,000

Step by Step Solution

★★★★★

3.45 Rating (174 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Most would report the cash inflow of 566589440 from the sale of the ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

254-B-M-A-S-C-F (1897).docx

120 KBs Word File

Students Have Also Explored These Related Managerial Accounting Questions!

On January 1, a company issues bonds dated January 1 with a par value of $340,000. The bonds mature in 5 years. The contract rate is 11%, and interest is paid semiannually on June 30 and December 31....

A company issued 5%, 20-year bonds with a face amount of $100 million. The market yield for bonds of similar risk and maturity is 4%. Interest is paid semiannually. At what price did the bonds sell?

The statement of cash flows for the year ended December 31, 2013, for Bronco Metals is presented below. Required: Prepare the statement of cash flows assuming that Bronco prepares its financial...

Myriad Solutions, Inc. issued 10% bonds, dated January 1, with a face amount of $500 million on January 1, 2021, for $442,648,000. The bonds mature on December 31, 2030 (10 years). For bonds of...

Most Solutions, Incorporated, issued 1 0 % bonds, dated January 1 , with a face amount of $ 6 4 0 million on January 1 , 2 0 2 4 . The bonds mature in 2 0 3 4 ( 1 0 years ) . For bonds of similar...

Myriad Solutions, Inc., issued 10% bonds, dated January 1, with a face amount of $320 million on January 1, 2018, for $283,294,720. The bonds mature on December 31, 2027 (10 years). For bonds of...

Most Solutions, Inc., issued 10% bonds, dated January 1, with a face amount of $640 million on January 1, 2021. The bonds mature in 2031 (10 years). For bonds of similar risk and maturity the market...

Question 20 ... Most Solutions, Inc., issued 10% bonds, dated January 1, with a face amount of $640 million on January 1, 2016. The bonds mature in 2026 (10 years). For bonds of similar risk and...

On March 1, 2021. Baddour, Inc., issued 10% bonds, dated January 1, with a face amount of $171 million. The bonds were priced at $148.1 million (plus accrued interest) to yield 12%. Interest is paid...

??????? Myriad Solutions, Incorporated issued $ 10 \% $ bonds, dated January 1 , with a face amount of $ \$ 460 $ million on January 1 , 2024, for $ \$ 407,236,160 $. - The bonds mature on...

Question 8 (2.174 points) How many atoms of oxygen are there in 36.5 grams of potassium nitrate, KNO3? [FW(KNO3) = 101.10 amu; NA = 6.02x1023] 5.56x1023 atoms 6.28x1023 atoms 6.52x1023 atoms...

Identify a recent Wall Street Journal article that could be related to one of these macroeconomics concept: (1) - Economics and the Economy: Limits, Alternative and Choices (2) - The Market System...

Underapplied factory overhead represents? a. a favorable total factory overhead cost variance. b. a direct materials quantity variance. c. actual factory overhead. d. an unfavorable total factory...

3. Options and Stock Price Volatility What is the impact of an increase in the volatility of the underlying stock on an options value? Explain.

Net income for the year for Tanizaki, Inc. was $750,000, but the statement of cash flows reports that cash provided by operating activities was $860,000. Tanizaki also reported capital expenditures...

Knutson Product Inc. is involved in the production of airplane parts and has the following inventory, carrying, and storage costs 1. Orders must be placed in round lots of 100 units. 2. Annual unit...

Data was collected for 300 fish from the North Atlantic. The length of the fish (in mm) is summarized in the GFDT below. Lengths (mm) Frequency 140 - 143 1 144 - 147 16 148 - 151 71 152 - 155 108 156...

Happy Corp. is all-equity-financed. The expected rate of return on the company's shares is 15%. If the company recapitalizes by issuing debt and targets a 30% debt-to-total capital (D/((D+E)=.30),...