Please help solve the following unanswered questions Thank y

Please help solve the following unanswered questions. Thank you kindly.

on January 1, 2018, Baddour, Inc., issued 12% bonds with a face amount of $163 million. The bonds were priced at S142.7 million to yield 14%. Interest is pald semiannually on June 30 and December 31. Baddour\'s fiscal year ends September 30. Requirec 1. What amount(s) related to the bonds would Baddour report in its balance sheet at September 30, 2018? 2. What amount(s) related to the bonds would Baddour report in its Income statement for the year ended September 30, 2018? 3. What amountís) related to the bonds would Baddour report in its statement of cash flows for the year ended September 30, 2018? In which section(s) should the amount s) appear? (For all requirements, Enter your answers In whole dollars.) 1. Net bonds payable Interest payable 2. Interest expense for fiscal 2018 3. Sale of bonds nflow from financing activities Cash interest paid S 9,780,000Outflow from operating activities

Solution

Discount on bonds Face value of bonds 163000000 less issue price of bonds 142700000 Discount on bonds 20300000 Amortization Schedule period cash interest discount carrying interest expense amortized value 6% 7% 1/1/2018 142700000 6/30/2018 9780000 9989000 209000 142909000 9/30/2018 4890000 5001815 111815 143020815 total 14990815 320815 cash interest = 163*6%*1000000 9780000 for three months 9780000/2 =4890000 interest expense is calculated on carrying value *7% for june to september interest expense is calculated for three months only 1) Bonds payable 163000000 less:Discounts on bonds 19979185 (20,300,000-209,000-111,815) Net bonds payable 143020815 interest payable 4890000 2) interest expense 14990815 3) sale of bonds 142700000 inflow from financing activities cash interest paid 9780000 outflow from operating activities