CP10-4 Comparing Bonds Issued at Par, Discount, and Premium [LO 10-3] Sikes Corporation, whose annual...
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CP10-4 Comparing Bonds Issued at Par, Discount, and Premium [LO 10-3] Sikes Corporation, whose annual accounting period ends on December 31, issued the following bonds: Date of bonds: January 1, 2015 Maturity amount and date: $260,000 due in 10 years (December 31, 2024) Interest: 10 percent per year payable each December 31 Date issued: January 1, 2015 Required 1. For each of the three independent cases that follow, provide the following amounts to be reported on the January 1, 2015, financial statements immediately after the bonds are issued. TIP: See Exhibit 10.5 for an llustration distinguishing Bonds Payable from their carrying value. (Negative amounts should be indicated with a minus sign.) Case A Case B (at 96) Case C January 1, 2015-Financial statements:(issued at 100) a. Bonds payable b. Unamortized premium (or discount) c. Carrying value at 102) 260,000
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