Question: Net Work Corporation, whose annual accounting period ends on December 31, issued the following bonds: Date of bonds: January 1, 2015 Maturity amount and date:
Net Work Corporation, whose annual accounting period ends on December 31, issued the following bonds:
Date of bonds: January 1, 2015
Maturity amount and date: $ 200,000 due in 10 years (December 31, 2024)
Interest: 10 percent per year payable each December 31
Date issued: January 1, 2015
Required:
For each of the three independent cases that follow, provide the amounts to be reported on the January 1, 2015, financial statements immediately after the bonds were issued:
Date of bonds: January 1, 2015
Maturity amount and date: $ 200,000 due in 10 years (December 31, 2024)
Interest: 10 percent per year payable each December 31
Date issued: January 1, 2015
Required:
For each of the three independent cases that follow, provide the amounts to be reported on the January 1, 2015, financial statements immediately after the bonds were issued:
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Case A issued at 100 Case B (at 98) Case C (at 102) a. Bonds payable b. Unamortzed premium (or discount c. Carrying value
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