Presented below are three independent situations.
Instructions
a. On January 1, 2022, Langley Co. issued 9% bonds with a face value of $700,000 for $656,992 to yield 10%. The bonds are dated January 1, 2022, and pay interest annually. What amount is reported for interest expense in 2022 related to these bonds?
b. Tweedie Building Co. has a number of long-term bonds outstanding at December 31, 2022. These long-term bonds have the following sinking fund requirements and maturities for the next 6 years.
Indicate how this information should be reported in the financial statements at December 31, 2022.
c. In the long-term debt structure of Beckford Inc., the following three bonds were reported: mortgage bonds payable $10,000,000; collateral trust bonds $5,000,000; bonds maturing in installments, secured by plant equipment $4,000,000. Determine the total amount, if any, of debenture bonds outstanding.
