ACC 304 Course Great Wisdom / tutorialrank.com ACC 304 Course Great Wisdom / tutorialrank.com | Page 264

(b) Show the proper balance sheet presentation for the liability
for bonds payable on the December 31, 2015, balance sheet.
(Round answers to 0 decimal places, e.g. 38,548.)

(c) Provide the answers to the following questions.

6) Fallen Company commonly issues long-term notes
payable to its various lenders. Fallen has had a pretty good
credit rating such that its effective borrowing rate is quite low
(less than 8% on an annual basis). Fallen has elected to use the
fair value option for the long-term notes issued to Barclay’s
Bank and has the following data related to the carrying and fair
value for these notes.

Carrying Value

December 31, 2014

$56,930

Fair Value

$56,930