Forest Corporation acquires Flower Inc.'s $50,000, 5-year, 5% bonds on January 1, 2021. The bonds pay interest on January 1 and July 1 each year. The bonds were issued to yield 7%. How will these bonds be reported on Forest's balance sheet at the end of 2021?  current assets current liabilities equity non-current assetsOn September 1, 2020, Black Opal Limited (BOL) purchased a $100,000, 90-day treasury bill for $99,300. BOL will record the purchase by debiting the investment at amortized cost.

Answer rating: 100% (QA)

Forest Corporation will report the bonds on its balance sheet at the end of 2021 as noncurrent assets Heres why Maturity date The bonds have a maturity date five years from the purchase date January 1 2021 making them longer than one year and thus classified as noncurrent assets Intent Since Forest Corporation intends to hold the bonds until maturity its classified as a longterm investment falling under noncurrent assets However within the noncurrent asset ... View the full answer