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marshalls corporation completed a $690,000, 6 percent bond issue on january 1, 2021. the bonds pay interest each december 31 and mature 10 years from january 1, 2021. required: for each of the three independent cases that follow, provide the amounts to be reported on the january 1 2021financial statements immediately after the bonds were issued: (Deductions should be indicated by a minus sign.)

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namrata421

Amount : For Case A = $690,000

               For Case B = $662,400

                For Case C = $717,600

As per the data given in the question,

Bond value = $690,000

Rate = 6%

Numbers of year for maturity = 10

As per the formula,

Amount = Bond value × Deviation%

= 690,000 × 4%

= $27,600

So,  Case A : $690,000 + 0 = $690,000

Case B : $690,000 - $27,600 = $662,400

Case C : $690,000 + $27,600 = $717,600

                         Case A (issued at 100)     Case B (at 95)      Case C (at 105)

Bonds Payable                 $690,000            $690,000            $690,000

Unamortized premium

or Discount                           0                        $27,600               $27,600

Carrying value                  $690,000             $662,400             $717,600

What format should be used to declare bond premium on the financial statements?

Bonds Payable will always be accompanied on the balance sheet by the liabilities account Premium on Bonds Payable. To put it another way, if the bonds represent a long-term debt, then Bonds Payable and Premium on Bonds Payable will both be listed as such on the balance sheet.

How is the premium for bonds payable recorded?

If there was a premium on bonds payable, the entry would be a credit to interest expenditure and a debit to premium on bonds payable, which would reduce the issuer's overall interest expense.

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https://brainly.com/question/7511249

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