Question

kier company issued $720,000 in bonds on january 1, year 1. the bonds were issued at face value and carried a 5-year term to maturity. the bonds have a 6.00% stated rate of interest and interest is payable in cash on december 31 each year. based on this information alone, what are the amounts of interest expense and cash flows from operating activities, respectively, that will be reported in the financial statements for the year ending december 31, year 1?

Answer 1

Investors and businesses alike use financial statements to gain an understanding of a company's profitability and financial position. It is a requirement that financial statements be prepared and made public.

Financial Statements: What Are They?

Budget reports are set up accounts that convey the business exercises and the monetary presentation of an organization. Accountants, businesses, government agencies, and others frequently audit financial statements. to guarantee accuracy and for investment, financing, and tax purposes.

Dec. 31, Year 1 Cash 76,000 Lease revenue 76,000 Dec. 31, Year 2 Cash 76,000 Lease revenue 76,000 Dec. 31, Year 2 Interest expense 17,750 $355,000 * 5% Cash 17,750

Jan. 1, Year 1 Cash 355,000 Bonds payable 355,000 Jan. 1, Year 1 Land 355,000 Cash 355,000 Dec. 31,

Year 1 Interest expense 17,750 $355,000 * 5% Cash 17,750.

To learn more about financial statements here:

https://brainly.com/question/14951563

#SPJ4