Question

Issuing Bonds Cyber Tech Inc. produces and distributes fiber optic cable for use by telecommunications companies....

Issuing Bonds

Cyber Tech Inc. produces and distributes fiber optic cable for use by telecommunications companies. Cyber Tech Inc. issued $78,000,000 of 20-year, 6% bonds on March 1 at their face amount, with Interest payable on March 1 and September 1. The fiscal year of the company is the calendar year.

Illustrate the effects on the accounts and financial statements of recording the following selected transactions for the current year. If no account or activity is affected, select "No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts. Round your answers to the nearest dollar.

Mar. 1. Issued the bonds for cash at their face amount.

Statement of Cash Flows Balance Sheet Income Statement
Assets = Liabilities + Stockholders' Equity
= +
Mar. 1. Mar. 1.
Statement of Cash Flows Income Statement

Sept. 1. Paid the interest on the bonds.

Statement of Cash Flows Balance Sheet Income Statement
Assets = Liabilities + Stockholders' Equity
= +
Sept. 1. Sept. 1.
Statement of Cash Flows Income Statement

Dec. 31. Recorded accrued interest for four months.

Statement of Cash Flows Balance Sheet Income Statement
Assets = Liabilities + Stockholders' Equity
= +
Dec. 31. Dec. 31.
Statement of Cash Flows Income Statement

Homework Answers

Answer #1

Issue bonds

Balance sheet
Date Assets = Liabilities + Stockholder's equity
Cash = Bonds payable Paid in capital + Retained earnings
Mar 1 7800000 7800000
Statement of cash flow Income statement
Cash flow from financing activities 7800000 No effect

Interest expense

Balance sheet
Date Assets = Liabilities + Stockholder's equity
Cash = Bonds payable Paid in capital + Retained earnings
Sep 1 -234000 -234000
Statement of cash flow Income statement
Cash flow from operating activities -234000 interest expense -234000

Interest payable

Balance sheet
Date Assets = Liabilities + Stockholder's equity
Cash = Interest payable Paid in capital + Retained earnings
Dec 31 117000 -117000
Statement of cash flow Income statement
No effect Interest expense -117000
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Cyber Tech Inc. produces and distributes fiber optic cable for use by telecommunications companies. Cyber Tech...
Cyber Tech Inc. produces and distributes fiber optic cable for use by telecommunications companies. Cyber Tech Inc. issued $65,250,000 of 10-year, 7% bonds on March 1 at their face amount, with Interest payable on March 1 and September 1. The fiscal year of the company is the calendar year. Illustrate the effects on the accounts and financial statements of recording the following selected transactions for the current year. If no account or activity is affected, select "No effect" from the...
Mod 8(c) - CH 8 EXERCISES/PROBLEMS (68 pts) Hide or show questions eBook Calculator Print Item...
Mod 8(c) - CH 8 EXERCISES/PROBLEMS (68 pts) Hide or show questions eBook Calculator Print Item Bond Premium; Bonds payable Transactions Beaufort Vaults Corporation produces and sells burial vaults. On July 1, 20Y3, Beaufort Vaults Corporation issued $25,000,000 of 10-year, 8% bonds at par. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Instructions: 1. Illustrate the effects of the issuance of the bonds on July...
Uncollectible Accounts, Using Direct Write-Off Method Illustrate the effects on the accounts and financial statements of...
Uncollectible Accounts, Using Direct Write-Off Method Illustrate the effects on the accounts and financial statements of the following transactions in the accounts of Valley Care & Supplies Co., a local hospital supply company that uses the direct write-off method of accounting for uncollectible receivables: If no account or activity is affected, select "No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts. March 18. Received $15,250 on...
Uncollectible Accounts, Using Direct Write-Off Method Illustrate the effects on the accounts and financial statements of...
Uncollectible Accounts, Using Direct Write-Off Method Illustrate the effects on the accounts and financial statements of the following transactions in the accounts of Valley Care & Supplies Co., a local hospital supply company that uses the direct write-off method of accounting for uncollectible receivables: If no account or activity is affected, select "No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts. March 18. Received $20,250 on...
Entries for Issuing Bonds Thomson Co. produces and distributes semiconductors for use by computer manufacturers. Thomson...
Entries for Issuing Bonds Thomson Co. produces and distributes semiconductors for use by computer manufacturers. Thomson issued $330,000 of 15-year, 11% bonds on May 1 of the current year at face value, with interest payable on May 1 and November 1. The fiscal year of the company is the calendar year. May 1 Issued the bonds for cash at their face amount. Nov. 1 Paid the interest on the bonds. Dec. 31 Recorded accrued interest for two months. Journalize the...
Notes Payable A business issued a 180-day, 7% note for $70,000 to a creditor on account....
Notes Payable A business issued a 180-day, 7% note for $70,000 to a creditor on account. Illustrate the effects on the accounts and financial statements of recording (a) the issuance of the note and (b) the payment of the note at maturity, including interest. If no account or activity is affected, select "No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts. a. Illustrate the effects on...
Notes Payable A business issued a 90-day, 7% note for $30,000 to a creditor on account....
Notes Payable A business issued a 90-day, 7% note for $30,000 to a creditor on account. Illustrate the effects on the accounts and financial statements of recording (a) the issuance of the note and (b) the payment of the note at maturity, including interest. If no account or activity is affected, select "No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts. a. Illustrate the effects on...
Statement of Stockholders' Equity The stockholders’ equity T accounts of I-Cards Inc. for the fiscal year...
Statement of Stockholders' Equity The stockholders’ equity T accounts of I-Cards Inc. for the fiscal year ended December 31, 20Y9, are as follows. COMMON STOCK Jan. 1 Balance 1,800,000 Apr. 14 Issued 16,200 shares 810,000 Dec. 31 Balance 2,610,000 PAID-IN CAPITAL IN EXCESS OF PAR Jan. 1 Balance 288,000 Apr. 14 Issued 16,200 shares 194,400 Dec. 31 Balance 482,400 TREASURY STOCK Aug. 7 Purchased 2,700 shares 129,600 RETAINED EARNINGS Mar. 31 Dividend 46,000 Jan. 1 Balance 3,130,000 June. 30 Dividend...
1. Which of the following asset accounts is increased when a receivable is collected? Group of...
1. Which of the following asset accounts is increased when a receivable is collected? Group of answer choices Accounts Receivable Supplies Accounts Payable Cash 2. Computer Corporation is starting its computer programming business and has sold stock of $15,000.  Identify how the accounting equation will be affected. Group of answer choices increase in assets (Cash) and increase in liabilities (Accounts Payable) increase in assets (Cash) and increase in stockholders' equity (Common Stock) increase in assets (Accounts Receivable) and decrease in liabilities...
Cash Dividends The date of declaration, date of record, and date of payment in connection with...
Cash Dividends The date of declaration, date of record, and date of payment in connection with a cash dividend of $1,200,000 on a corporation’s common stock are June 1, July 15, and August 14, respectively. Illustrate the effects on the accounts and financial statements for June 1. If no account or activity is affected, select "No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts. Statement of...