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Analyzing and Reporting Financial Statement Effects of Bond Transactions

Analyzing and Reporting Financial Statement Effects of Bond Transactions
Winston Inc. reports financial statements each December 31 and issues $400,000 of 9%, 15-year bonds dated May 1, 2017, with interest payments on October 31 and April 30. Assuming the bonds are sold at par on May 1, 2017, complete the financial statement effects template to reflect the following events: (a) bond issuance, (b) the first semiannual interest payment, and (c) retirement of $150,000 of the bonds at 102 on November 1, 2017.

Use negative signs with answers, when appropriate.

 
Balance Sheet
Transaction Cash Asset +

Noncash

Assets

= Liabilities +

Contributed

Capital

+

Earned

Capital

 
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(b) Answer
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(c) Answer
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Income Statement

Revenue

-

Expenses

=

Net

Income

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Sep 15 2020 View more View Less

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