On January 1, 2014, Branagh Limited issued for $1,075,230 its 20-year, 13% bonds that have a…

On January 1, 2014, Branagh Limited issued for $1,075,230 its 20-year, 13% bonds that have a maturity value of $1 million and pay interest semi-annually on January 1 and July 1. The bond issue costs were not material in amount. Three presentations follow of the statement of financial position long-term liability section that might be used for these bonds at the issue date: 1. Bonds payable (maturing January 1, 2034) ………………………………………… $1,075,230 2. Bonds payable principal (face value $1,000,000, maturing January 1, 2034) ………… 97,220a Bonds payable interest (semi-annual payment of $65,000) …………………………….. 978,010b Total bond liability …………………………………………………………………… $1,075,230 3. Bonds payable principal (maturing January 1, 2034) ……………………………… $1,000,000 Bonds payable interest ($65,000 per period for 40 periods) …………………………… 2,600,000 Total bond liability …………………………………………………………………… $3,600,000 a The present value of $1 million due at the end of 40 (six-month) periods at the yield rate of 6% per period b The present value of $65,000 per period for 40 (six-month) periods at the yield rate of 6% per period Instructions (a) Discuss the conceptual merit(s) of each of the three date-of-issue statement of financial position presentations shown above. (b) Explain w

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