On January 1, 2011, Bidden Corporation sold and issued $100,000, five-year, 10 percent bonds. The bond interest

Question:

On January 1, 2011, Bidden Corporation sold and issued $100,000, five-year, 10 percent bonds. The bond interest is payable each June 30 and December 31. Assume three separate and independent selling scenarios: Case A, at par; Case B, at 95; and Case C, at 110.

Required:

Complete a schedule similar to the following for each separate case assuming straight-line amortization of discount and premium. Disregard income tax. Give all dollar amounts in thousands.

At End of 2011 At End of 2012 At End of 2014 At End of 2013 2$

Case A: Sold at par
Interest expense on income statement
Net liability on balance sheet
Case B: Sold at a discount
Interest expense on income statement
Net liability on balance sheet
Case C: Sold at a premium
Interest expense on income statement
Net liability on balancesheet

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...