Question

bonds mature on December 31, 2030 (10 years). For bonds of similar risk and maturity the market yield is 14%. Interest is paid semiannually on June 30 and December 31. Required: Complete the table below to calculate the amounts related to the bonds that Myriad would report in its financial statements. Indicate the amounts reported on the financial statements below for the year ending December 31, 2021 Complete this question by entering your answers in the tabs below. Calculation Financial Statements Complete the table below to calculate the amounts related to the bonds that Myriad would report in its financial statements. (Round your answers to the nearest whole dollar) Period-End Cash Interest Paid Bond Interest Expense Discount Amortization Carrying Value 01/01/2021 06/30/2021 12/31/2021 Total calculation Financial Statements >

Answer 1

Solution:

Bond Amortization Schedule
Date	Cash interest	Interest Expense	Discount amortization	Carrying value
01-Jan-21				$34,86,83,634
30-Jun-21	$2,34,00,000	$2,44,07,854	$10,07,854	$34,96,91,488
31-Dec-21	$2,34,00,000	$2,79,75,319	$45,75,319	$35,42,66,807
Total	$4,68,00,000	$5,23,83,173

Balance Sheet:
Net Liability	$35,42,66,807
Income Statement:
Interest expense	$5,23,83,173
Statement of cash flows:
Operating	-$4,68,00,000
Investing	0
Financing	$34,86,83,634