E-Tech Initiatives Limited plans to issue $400,000, 10-year, 4 percent bonds. Interest is payable annually on...

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E-Tech Initiatives Limited plans to issue $400,000, 10-year, 4 percent bonds. Interest is payable annually on December 31. All of the bonds will be issued on January 1, 2022. Show how the bonds would be reported on the January 2, 2022, balance sheet if they are issued at 97. (Deductions should be indicated by a minus sign.) E-TECH INITIATIVES LIMITED Balance Sheet (partial) As of January 2, 2022 Long-Term Liabilities Bonds Payable Discount on Bonds Payable Carrying Value $ 400,000 12,000 $ 412,000 E-Tech Initiatives Limited plans to issue $400,000, 10-year, 4 percent bonds. Interest is payable annually on December 31. All of the bonds will be issued on January 1, 2022. Show how the bonds would be reported on the January 2, 2022, balance sheet if they are issued at 97. (Deductions should be indicated by a minus sign.) E-TECH INITIATIVES LIMITED Balance Sheet (partial) As of January 2, 2022 Long-Term Liabilities Bonds Payable Discount on Bonds Payable Carrying Value $ 400,000 12,000 $ 412,000

Answer rating: 100% (QA)

Answer To determine how the bonds would be reported on the January 2 2022 balance sheet we need to c... View the full answer