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:
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January 1, 2011
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Cash (price)
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566,589,440
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Discount on bonds (difference)
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73,410,560
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Bonds payable (face amount)
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640,000,000
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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?