Myriad Solutions, Inc., issued 12% bonds, dated January 1, with
a face amount of $330 million on January 1, 2018, for $295,039,998.
The bonds mature on December 31, 2027 (10 years). For bonds of
similar risk and maturity the market yield is 14%. Interest is paid
semiannually on June 30 and December 31. Required: Complete the
table below to calculate the amounts related to the bonds that
Myriad would report in its financial statements. Indicate the
amounts reported on the financial statements below for the year
ending December 31, 2018.
Complete the table below to calculate the amounts related to the
bonds that Myriad would report in its financial statements. (Round
your answers to the nearest whole dollar.)
|
|
Period-End |
Cash Interest Paid |
Bond Interest Expense |
Discount Amortization |
Carrying Value |
01/01/2018 |
|
|
06/30/2018 |
|
|
$0 |
0 |
12/31/2018 |
0 |
|
0 |
|
Total |
$0 |
$0 |
|
|
Indicate the amounts reported on the financial statements below
for the year ending December 31, 2018. (Any outflow of cash should
be indicated by a minus sign. Round your answers to nearest whole
dollar.)
|
|
|
|
Balance
sheet: |
|
Net
liability |
|
Income
statement: |
|
Interest
expense |
|
Statement
of cash flows: |
|
Operating |
|
Investing |
|
Financing |
|
|