c Stellar Building Co has a number of longterm bonds outstan

(c) Stellar Building Co. has a number of long-term bonds outstanding at December 31, 2017. These long-term bonds have the following sinking fund requirements and maturities for the next 6 years.

Sinking Fund

Maturities

Indicate how above information should be reported in the financial statements at December 31, 2017. (Round answers to 0 decimal places, e.g. 38,548.)

Maturities and sinking fund requirements

(d) In the long-term debt structure of Pearl Inc., the following three bonds were reported: mortgage bonds payable $10,000,000; collateral trust bonds $5,016,000; bonds maturing in installments, secured by plant equipment $3,996,000.

Determine the total amount, if any, of debenture bonds outstanding.

		Sinking Fund		Maturities
2018		$305,000		$92,000
2019		92,000		228,000
2020		92,000		92,000
2021		198,000		-
2022		198,000		138,000
2023		198,000		92,000

Solution

C) Maturities and Sinking Fund requirement as long term Debt for Next Five tear Sinking Fund Maturities Amount ($) 2018 $305,000 92000 397,000 2019 92000 228000 320,000 2020 92000 92000 184,000 2021 198000 198,000 2022 198000 138000 336,000 2023 198000 92000 290,000 (D) Since the three bonds reported are secured by either real estate, securities of other corporations, or plant and equipment , none of the bonds are classified as debenture bonds.