Please help with the blanks in part 1 and 2 On January 1, 2016, Baddour, Inc., i
ID: 2571034 • Letter: P
Question
Please help with the blanks in part 1 and 2
On January 1, 2016, Baddour, Inc., issued 12% bonds with a face amount of $175 million. The bonds were priced at $153.5 million to yield 14%. Interest is paid semiannually on June 30 and December 31. Baddour's fiscal year ends September 30. Required 1. What amount(s) related to the bonds would Baddour report in its balance sheet at September 30, 2016? (Enter your answers in whole dollars.) Net bonds payable Interest payable S 5,250,000 2. What amount(s) related to the bonds would Baddour report in its income statement for the year ended Septbr 30, 2016? (Enter your answer in whole dollars.) Interest expense for fiscal 2016 3. What amount(s) related to the bonds would Baddour report in its statement of cash flows for the year ended September 30, 2016? In which section(s) should the amount(s) appear? (Enter your answers in whole dollars.) Sale of bonds 153,500,000 Infow from financing activities Cash interest paid 10,500,000 Outflow from operating activitiesExplanation / Answer
1.
Net bonds payable will be face value of bond, unless otherwise entioned at the time of issue of bond.
2. Interest expense for fiscal 2016 15,750,000
Net bonds payable $175,000,000 Interest payable $5,250,000