CengageNOWv2| Online teachin × Cengage Learning x b Answered: CengageNOWv2| Onli x i v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLoca. ☆ 00 Ch 14-2 Practice Exercises Discount Amortization On the first day of the fiscal year, a company issues a $7,400,000, 8%, 9-year bond that pays semiannual interest of $296,000 ($7,400,000 × 8% × ½), receiving cash of $6,950,082. Journalize the first interest payment and the amortization of the related bond discount. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. Interest Expense 320,995.45 X Discount on Bonds Payable 24,995.45 K Cash 296,000 Feedback Check My Work 2:35 PM P Type here to search 3/17/2020 II

Q: What does a bond issue's "call" feature entail? What effect does the call feature have on bond…

A: This question deals with the "call" feature of a bond issuance entails and the call feature's effect…

Q: ! Required information [The following information applies to the questions displayed below.] Return…

A: Bond is financial instrument which is used to raise funds for financial obligations. Bond can be…

Q: What is the excess of the issue price of bonds over their face amount called? premium discount…

A: Premium on Bonds: When bond market costs higher than its face value then bonds is called at premium.…

Q: Who Issues Bonds?

A: A bond is a fixed income instrument. The bond holders are referred to as the debt holders or…

Q: Why consider bonds?

A: A bond can be described as the security or asset which provides secure income to the investor…

Q: What effect does collateral have on a bond's interest rate? What effect does subordination have on a…

A: There are various factors that impact a bond's price. We discount back the future cash flows of a…

Q: When a bond is issued, what is its present value?

A: The present value of the bond is the total of the present value of the bond's interest payments that…

Q: how to interpret the process of bond issuance?

A: Corporate Bond Issue: Corporate bond issuance is one method of raising capital for a company. A bond…

Q: What is the difference between a note and a bond?

A: Both Note and bond are issued by treasury.These are interchangeably used terms as there is no legal…

Q: What are income bonds and indexed bonds?

A: The income bond is a type of debt instrument wherein the borrower is relied upon to pay just the par…

Q: What are the four categories of collateral value for secured loans?How does each affect credit risk?

A: Real property (e.g., land, buildings) Tangible personal property (e.g., equipment, vehicles)…

Q: What is the meaning of contemporary bonds

A: If enough funds are not available with the firm, in that case it can have funds from outside. These…

Q: What is new issue bond?

A: The bond is a fixed income financial instrument that is issued by the government or by the companies…

Q: What amount of interest is expensed on a bond interest payment?

A: Whenever an interest payment is made on bonds, amount of interest expensed : Interest expensed =…

Q: Where and how are bonds proceeds recorded?  Bond interest and bond principal payments?

A: Bond is a financial instrument issued by the company to raise funds for the growth and development…

Q: Why is it necessary to amortize the discount and premium on bond issues?

A: Introduction:   Bonds may be sold at a discount, at a premium, or at face value.

Q: What type of account is Discount on Bonds Payable? What is its normal balance? Is it added to or…

A: Bonds Payable: Bonds payable are referred to long-term debts of the business, issued to various…

Q: What effect does collateral have on the interest rate paid on a bond? Subordination also has an…

A: Many variables influence the interest rate on a bond, including collateral, subordination, and so…

Q: Why discount and premium on issue of bonds is amortized?

A: Bonds are intangible assets, the amortization is similar to depreciation, it means systematically…

Q: what are treasury-indexed bonds?

A: Treasury Indexed Bonds are medium to long term securities for which the security's capital worth is…

Q: How the bonds market operates?

A: Bond markets are categorized in to two primary market and secondary market. Primary market is the…

Q: What is the straight-line amortization approach with regards to a bond discount or premium?

A: Bond with a straight-line amortization schedule: The straight-line amortization technique is a way…

Q: Why would we record a bond a premium or discount?

A: Bond is a type of debt security which is issued by the bond issuer at the time taking debt from bond…

Q: What are the similarities and difference between bonds and notes?

A: Notes payable: Notes payable is a written promise to pay a certain amount on a future date, with…

Q: When does a premium on bonds payable occur?

A: Bonds Payable: Bonds payable are referred to long-term debts of the business, issued to various…

Q: How does accrued interest on a bond affect the purchase price?

A: Interest on bond is normally paid semi annually. When a bond is transferred in between these…

Q: Will the amortization of Discount on Bonds Payable result in a higher or lower Bond Interest…

A: Introduction: The amortization of discounts on bonds payable will increase interest costs. When…

Q: Which costs are included in bond issuance costs? How are they recorded?

A: Bonds:   Bonds are long-term promissory notes that are represented by a company while borrowing…

Q: What is the main difference between notes payable and bonds payable?

A: Following are the differences between Bond and note payable.  Bond are issued to raise long term…

Q: If bonds issue at a discount, is the stated interest rate less than, equal to, or more than the…

A: Bonds: Bonds are a kind of interest bearing notes payable, usually issued by companies, universities…

Q: What are the Pro's and con's of bonds?

A: The bonds are one of the most liquid and active financial instruments in the world. Bonds are…