Question: Where does a bond sinking fund appear on the balance sheet?

Where does a bond sinking fund appear on the balance sheet?

Step by Step Solution

★★★★★

3.32 Rating (158 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Bond sinking funds are used to retire the bond liability As these fund are not a... View full answer

blur-text-image
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)

Word file Icon

1365-B-C-A-B(4096).docx

120 KBs Word File

Students Have Also Explored These Related Cost Accounting Questions!

Q:

Tilman Company is required by a bond indenture to make equal annual payments to a bond sinking fund at the end of each of the next 20 years. The sinking fund will earn 8 percent interest and must...

Q:

Juicy Energy Industries develops and produces biomass, an alternative energy source. The company has an outstanding $10,000,000, 30-year, 10% bond issue dated July 1, 2007. The bond issue is due June...

Q:

Lachgar Industries develops and produces bio diesel, an alternative energy source. The company has an outstanding $200,000,000, 30-year, 12% bond issue dated July 1, 2005. The bond issue is due June...

Q:

What Is The Difference Between A Balance Sheet Of A Nonprofit Organization And A For-profit Business? What Does A Balance Sheet Tell Us? How Does Revenue Affect The Balance Sheet? What Is An...

Q:

How is a bond sinking fund classified on a balance sheet?

Q:

Solar Industries develops and produces high-efficiency solar panels. The company has an outstanding $10,000,000, 30-year, 10% bond issue dated July 1, 2011. The bond issue is due June 30, 2040. Some...

Q:

Solar Industries develops and produces high-efficiency solar panels. The company has an outstanding $10,000,000, 30-year, 10% bond issue dated July 1, 2011. The bond issue is due June 30, 2040. Some...

Q:

Solar Industries develops and produces high-efficiency solar panels. The company has an outstanding $10,000,000, 30 year, 10% bond issue dated July 1, 2009. The bond issue is due June 30, 2038. Some...

Q:

Solar Industries develops and produces high-efficiency solar panels. The company has an outstanding $10,000,000, 30-year, 10% bond issue dated July 1, 2009. The bond issue is due June 30, 2038. Some...

Q:

Juicy Energy Industries develops and produces bio mass, an alternative energy source. The company has an outstanding $10,000,000 30-year, 10% bond issue dated July 1, 2007. The bond issue is due June...

Q:

2. A chef timed 28 assistant chefs preparing pasta sauce. He found that the mean was 25 minutes. From the literature and his experience he knows o = 5.75 minutes. Calculate and interpret the 95%...

Q:

What are the risks in a FRA if you are the buyer? Answer the following questions: a. When will the buyer of a five year cap on three- month LIBOR with a 1 percent strike rate expect to receive cash?...

Q:

Read the case study. Walmart is the world's largest retail business. The company wanted to enter the Indian market. Walmart did not set up its own stores initially as it had little knowledge of the...

Q:

10. How is a central bank different from a typical commercial bank?

Q:

Suppose that the market can be described by the following three sources of systematic risk with associated risk premiums. The return on a particular stock is generated according to the following...

Q:

BID OR ASK! SHARES PRICE Bid 500 $32.50 Bid 300 $3250 Bid 400 $3256 Bid 1,000 $32.60 Bid 400 $32.64 Bid 1,200 $32.64 $32.68 300 Bid 400 $32.78 Ask $32.80 1,000 Ask $32.84 300 Ask $32.84 400 Ask $3288...

Q:

Book Co. has 1.8 million shares of common equity with a par (book) value of $1.10, retained earnings of $28.4 million, and its shares have a market value of $50.07 per share. It also has debt with a...