Transcribed Image Text
In: AccountingAnalyzing and Reporting Financial Statement Effects of BondTransactions On January 1, 2012, Trueman Corporation issued...Analyzing and Reporting Financial Statement Effects of BondTransactions On January 1, 2012, Trueman Corporation issued$400,000 of 20-year, 11% bonds for $369,908, yielding a market(yield) rate of 12%. Interest is payable semiannually on June 30and December 31. (a) Confirm the bond issue price. Use Excel or afinancial calculator to computer your answers. Round your answersto the nearest whole number. Present value of principal repayment $Answer Present value of interest payments $ Answer Selling price ofbonds $ 369,908 (b) Indicate the financial statement effects usingthe template for (1) bond issuance, (2) semiannual interest paymentand discount amortization on June 30, 2012, and (3) semiannualinterest payment and discount amortization on December 31, 2012.Round answers to nearest whole number. Use negative signs withanswers, when appropriate. Balance Sheet Transaction Cash Asset +Noncash Assets = Liabilities + Contributed Capital + Earned Capital(1) Answer Answer Answer Answer Answer (2) Answer Answer AnswerAnswer Answer (3) Answer Answer Answer Answer Answer IncomeStatement Revenue - Expenses = Net Income Answer Answer AnswerAnswer Answer Answer Answer Answer Answer