Which of the following would NOT be included in the journal entry to show the conversion of bonds payable? ( NIE 13) A credit to gain on conversion credit to additional paid in capital debit to bond premium debit to bonds payable

Q: How would the balance of the discount on bonds payable account usually be reported in the balance…

A: Definition:   Bonds payable account: The account which holds the total liability to be paid to the…

Q: n the balance sheet, the account, Premium on Bonds Payable, is: OA. classified as a liability…

A: Bonda means company is borrowing money from the investors by issuing them a legal document that…

Q: Explain how each of the columns in an amortization schedule is calculated, assuming the bonds are…

A: Amortization is the process of converting long term loans or bonds into series of periodic payment.…

Q: How are the bonds issued, what is the appropriate journal entry Provide example for issuing bonds

A: Bonds payable is a long-term liability in which the bonds has been issued in lieu of amount borrowed…

Q: The Discount on Bonds Payable account is: Multiple Choice O O O O O An expense. A liability. A…

A: An expense account is not carried forward and closed in the income statement. But Discount on Bonds…

Q: The journal entry to record the issuance of bonds at a premium consists of a debit to Cash, a debit…

A: Issue of bonds is one of source of finance being used in business. Under this, long term or short…

Q: Vaughn Hills Ltd. issued five-year bonds with a face value of $150,000 on January 1. The bonds have…

A: Bonds :— It is one of the type of securities that pays fixed periodic interest and face value amount…

Q: All of the following are differences between IFRS and GAAP in accounting for liabilities except: (a)…

A: Generally Accepted Accounting Principles (GAAP): Generally Accepted Accounting Principles are the…

Q: On an income distribution schedule, any gain or loss resulting from intercompany bonds is charged to…

A: Bonds are tradable assets issued by business entities as debt instruments. The holders of the bonds…

Q: Interest expense on the income statement: A) B) C) D) is net of any bond premium amortization will…

A: Interest expense on the income statement:Answer: (A) is net of any bond premium amortization

Q: On the maturity date of a bond​ investment, the journal entry includes​ ________.   A. a debit to…

A: The held-to-maturity debt investment account is classified as long-term investment account. The…

Q: what's the difference between retirement of bond and repayment to their bond holder( assume the…

A: The answer for the theory question on difference between retirement of bond and repayment of bond…

Q: Would accounting differ if the debt were designated as notes rather than bonds?

A: A bond indenture is a paper certificate or a document which describes specific promises made to the…

Q: If bonds are issued between interest dates, the entry on the bocC of the issuing corporation could…

A: Interest is calculated on face value of a bond.

Q: A debit to Discount on Bonds Payable would most likely be possible on which of the situations?…

A: The bonds are issued at discount when market rate is higher than the coupon rate of interest.

Q: What is the treatment of transaction costs from issuance to a bond payable measured using the…

A: Transaction costs: Transaction costs also known as issue costs, are those costs that are incurred…

Q: 4. What best describes the discount on bonds payable account? a.An asset b.A liability c.An expense…

A: Discount on bonds payable account is used when a bond is issued at discount.

Q: Listed below are several terms and phrases associated with current liabilities. Pair each item from…

A: Current liabilities are a company's short-term financial obligations that are due within one year or…

Q: The balance in Unamortized Premium on Bonds Payable should be O a. reported separately in the…

A: The bond premium is the excess amount that the bond is priced at over its face value. If the amount…

Q: Which of the following is stated correctly? a.    Current liabilities follow non-current liabilities…

A: Definition:   Liability: Liability is an agreement made by a company to pay a certain amount for the…

Q: Bonds which are collateralized by specific assets in the event the borrowing company defaults on…

A: Bonds are a form of liability for the business. These can be issued for short term or long term.…

Q: When accounting for a bond whose interest is included in the face amount, the account Discount in…

A: Discount in Bond payable Issue of bond which can be incurred in between face value, discount and…

Q: The discount on bonds payable or premium on bonds payable is shown on the balance sheet as an…

A: The amount that the issuer owes bondholders is kept in an account called "Bonds Payable." This…

Q: Describe the accouting for bonds payaable, including bonds issued at face amount , bonds issued at a…

A: A bond payable is a promise to pay series of amount as interest overtime and fixed amount at…

Q: On June 1, $50,000 of bonds were purchased between interest dates. The brokerage commission was…

A: Total Cost of bonds includes cost, brokerage, commission, etc.

Q: What is the journal entry to record the bond interest payment if you do not have to neither a…

A: The objective of the question is to identify the correct journal entry to record the bond interest…

Q: Question Content Area The journal entry a company makes for the payment of interest, interest…

A: The objective of the question is to identify the correct journal entry for the payment of interest,…

Q: The following data were taken from the balance sheet accounts of Sage Corporation on December 31,…

A: The distribution of the company’s profit to the shareholders is termed as dividends. There are…

Q: Which method is easier to compute? Multiple Choice effective interest method of accounting for…

A: An amortized bond is one in which the principal (face value) on the debt is paid down regularly,…

Q: Select the term that best fits each of the following definitions and descriptions.

A: Bonds are the liability of the company which they have to pay after the expiry of the bond’s…

Q: unamortized premium

A: Any unamortized premium should be reported on the balance sheet of the issuing corporation as Answer…

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: Which of the following is not generally correct about recording a sale of a debt security before its…

A: The other options are generally correct - A discount on the debt security is typically amortized to…

Q: When bonds are redeemed before maturity, how is the gain or loss onredemption determined? Why does…

A: A bond is a repaired instrument that represents a loan from an investor to a borrower (typically…

Q: Which of the following would NOT be included in the journal entry to show the conversion of bonds…

A: Journal entry: A journal entry is a documentation of a business's financial activities kept in its…

Q: the carrying amount of bonds redeemed is more than the redemption price, the difference is recorded…

A: Bonds are financial instruments or debt securities that are issued by corporations, governments, and…

Q: The carrying value of Bonds Payable equalsa. Bonds Payable plus Discount on Bonds Payable.b. Bonds…

A: Answer:   Option b

Q: Apr. 1 Purchased for cash $338,000 of Vasquez City 3% bonds at 100 plus accrued interest of $2,535.…

A: Journal is a place where accounting transactions are listed in the book keeping system before ledger…

Q: The application of the present value factors in the computation of carrying amounts of bonds payable…

A: Introduction:- The following principal application for the present value factors in the computation…

Q: he journal entry a company makes for the is a. debit Cash and Discount on Bonds Payable, cred Ob.…

A: When the contract rate is less than the Market rate , the bonds are issued at discount.

Q: 1. When a company purchases another company's bonds as an investment, an account called investments-…

A: Bonds are instrument issued by company acknowledging the debt raised by company . It is a liability…

Q: Assuming the bonds are issued at a discount, explain how each column in an amortization schedule is…

A: Introduction: The process of transforming long-term loans or bonds into a series of monthly payments…

Q: 1. How are the bonds issued, what is the appropriate journal entry?   2. Provide example for…

A: The two theory questions on bonds have been answered hereunder : Bonds are the financial instruments…

Q: The carrying value on bonds equals Bonds Payablea. minus Premium on Bonds Payable.b. plus Discount…

A: Answer: d. minus Discount on Bonds Payable.