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What would be the amount related to the bonds

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Question - Most Solutions, Inc., issued 10% bonds, dated January 1, with a face amount of $640 million on January 1, 2011. The bonds mature in 2021 (10 years). For bonds of similar risk and maturity the market yield is 12%. Interest is paid semiannually on June 30 and December 31. Most recorded the sale as follows:

January 1, 2011

Cash (price)

566,589,440

Discount on bonds (difference)

73,410,560

Bonds payable (face amount)

640,000,000

Required: What would be the amount(s) related to the bonds that Most would report in its statement of cash flows for the year ended December 31, 2011?

Reference no: EM131790691

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