Bonds Bonds are a kind of interest bearing notes payable, usually issued by companies, universities and governmental organizations. It is a debt instrument used for the purpose of raising fund of the corporations or governmental agencies. If selling price of the bond is equal to its face value, it is called as par on bond. If selling price of the bond is lesser than the face value, it is known as discount on bond. If selling price of the bond is greater than the face value, it is known as premium on bond. Effective interest rate of amortization bond Effective interest rate method of amortization is a process of amortizing premium on bond or discount on bond, which allocates the different amount of interest expense in each period of interest payment, but at a constant percentage rate. To Prepare: The journal entry to record the issuance of bonds of Corporation L on January 1, 2017.

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Answer 1

Question

Chapter 10, Problem 10.10AP

(a)

To determine

Bonds

Bonds are a kind of interest bearing notes payable, usually issued by companies, universities and governmental organizations. It is a debt instrument used for the purpose of raising fund of the corporations or governmental agencies. If selling price of the bond is equal to its face value, it is called as par on bond. If selling price of the bond is lesser than the face value, it is known as discount on bond. If selling price of the bond is greater than the face value, it is known as premium on bond.

Effective interest rate of amortization bond

Effective interest rate method of amortization is a process of amortizing premium on bond or discount on bond, which allocates the different amount of interest expense in each period of interest payment, but at a constant percentage rate.

To Prepare: The journal entry to record the issuance of bonds of Corporation L on January 1, 2017.

(b)

To determine

To Prepare: The amortization schedule through December 2019 for issuance of bonds of Corporation L.

(c)

To determine

To Prepare: The journal entry to record the accrued interest expense and discount on amortize bond for Corporation L on December 31, 2017.

(d)

To determine

To Prepare: The journal entry to record the payment of interest of Corporation L on January 1, 2018.

(e)

To determine

To Prepare: The journal entry to record the accrued interest expense and discount on amortize bond for Corporation L on December 31, 2018.

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Answer 2

Question

Chapter 10, Problem 10.10AP

(a)

To determine

Bonds

Bonds are a kind of interest bearing notes payable, usually issued by companies, universities and governmental organizations. It is a debt instrument used for the purpose of raising fund of the corporations or governmental agencies. If selling price of the bond is equal to its face value, it is called as par on bond. If selling price of the bond is lesser than the face value, it is known as discount on bond. If selling price of the bond is greater than the face value, it is known as premium on bond.

Effective interest rate of amortization bond

Effective interest rate method of amortization is a process of amortizing premium on bond or discount on bond, which allocates the different amount of interest expense in each period of interest payment, but at a constant percentage rate.

To Prepare: The journal entry to record the issuance of bonds of Corporation L on January 1, 2017.

(b)

To determine

To Prepare: The amortization schedule through December 2019 for issuance of bonds of Corporation L.

(c)

To determine

To Prepare: The journal entry to record the accrued interest expense and discount on amortize bond for Corporation L on December 31, 2017.

(d)

To determine

To Prepare: The journal entry to record the payment of interest of Corporation L on January 1, 2018.

(e)

To determine

To Prepare: The journal entry to record the accrued interest expense and discount on amortize bond for Corporation L on December 31, 2018.

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Answer 3

Question

Chapter 10, Problem 10.10AP

(a)

To determine

Bonds

Bonds are a kind of interest bearing notes payable, usually issued by companies, universities and governmental organizations. It is a debt instrument used for the purpose of raising fund of the corporations or governmental agencies. If selling price of the bond is equal to its face value, it is called as par on bond. If selling price of the bond is lesser than the face value, it is known as discount on bond. If selling price of the bond is greater than the face value, it is known as premium on bond.

Effective interest rate of amortization bond

Effective interest rate method of amortization is a process of amortizing premium on bond or discount on bond, which allocates the different amount of interest expense in each period of interest payment, but at a constant percentage rate.

To Prepare: The journal entry to record the issuance of bonds of Corporation L on January 1, 2017.

(b)

To determine

To Prepare: The amortization schedule through December 2019 for issuance of bonds of Corporation L.

(c)

To determine

To Prepare: The journal entry to record the accrued interest expense and discount on amortize bond for Corporation L on December 31, 2017.

(d)

To determine

To Prepare: The journal entry to record the payment of interest of Corporation L on January 1, 2018.

(e)

To determine

To Prepare: The journal entry to record the accrued interest expense and discount on amortize bond for Corporation L on December 31, 2018.

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Answer 4

Question

Chapter 10, Problem 10.10AP

(a)

To determine

Bonds

Bonds are a kind of interest bearing notes payable, usually issued by companies, universities and governmental organizations. It is a debt instrument used for the purpose of raising fund of the corporations or governmental agencies. If selling price of the bond is equal to its face value, it is called as par on bond. If selling price of the bond is lesser than the face value, it is known as discount on bond. If selling price of the bond is greater than the face value, it is known as premium on bond.

Effective interest rate of amortization bond

Effective interest rate method of amortization is a process of amortizing premium on bond or discount on bond, which allocates the different amount of interest expense in each period of interest payment, but at a constant percentage rate.

To Prepare: The journal entry to record the issuance of bonds of Corporation L on January 1, 2017.

(b)

To determine

To Prepare: The amortization schedule through December 2019 for issuance of bonds of Corporation L.

(c)

To determine

To Prepare: The journal entry to record the accrued interest expense and discount on amortize bond for Corporation L on December 31, 2017.

(d)

To determine

To Prepare: The journal entry to record the payment of interest of Corporation L on January 1, 2018.

(e)

To determine

To Prepare: The journal entry to record the accrued interest expense and discount on amortize bond for Corporation L on December 31, 2018.

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Answer 5

Chapter 10, Problem 10.10AP

(a)

To determine

Bonds

Bonds are a kind of interest bearing notes payable, usually issued by companies, universities and governmental organizations. It is a debt instrument used for the purpose of raising fund of the corporations or governmental agencies. If selling price of the bond is equal to its face value, it is called as par on bond. If selling price of the bond is lesser than the face value, it is known as discount on bond. If selling price of the bond is greater than the face value, it is known as premium on bond.

Effective interest rate of amortization bond

Effective interest rate method of amortization is a process of amortizing premium on bond or discount on bond, which allocates the different amount of interest expense in each period of interest payment, but at a constant percentage rate.

To Prepare: The journal entry to record the issuance of bonds of Corporation L on January 1, 2017.

(b)

To determine

To Prepare: The amortization schedule through December 2019 for issuance of bonds of Corporation L.

(c)

To determine

To Prepare: The journal entry to record the accrued interest expense and discount on amortize bond for Corporation L on December 31, 2017.

(d)

To determine

To Prepare: The journal entry to record the payment of interest of Corporation L on January 1, 2018.

(e)

To determine

To Prepare: The journal entry to record the accrued interest expense and discount on amortize bond for Corporation L on December 31, 2018.

Answer 6

Chapter 10, Problem 10.10AP

(a)

To determine

Bonds

Bonds are a kind of interest bearing notes payable, usually issued by companies, universities and governmental organizations. It is a debt instrument used for the purpose of raising fund of the corporations or governmental agencies. If selling price of the bond is equal to its face value, it is called as par on bond. If selling price of the bond is lesser than the face value, it is known as discount on bond. If selling price of the bond is greater than the face value, it is known as premium on bond.

Effective interest rate of amortization bond

Effective interest rate method of amortization is a process of amortizing premium on bond or discount on bond, which allocates the different amount of interest expense in each period of interest payment, but at a constant percentage rate.

To Prepare: The journal entry to record the issuance of bonds of Corporation L on January 1, 2017.

Answer 7

Chapter 10, Problem 10.10AP

(a)

To determine

Bonds

Bonds are a kind of interest bearing notes payable, usually issued by companies, universities and governmental organizations. It is a debt instrument used for the purpose of raising fund of the corporations or governmental agencies. If selling price of the bond is equal to its face value, it is called as par on bond. If selling price of the bond is lesser than the face value, it is known as discount on bond. If selling price of the bond is greater than the face value, it is known as premium on bond.

Effective interest rate of amortization bond

Effective interest rate method of amortization is a process of amortizing premium on bond or discount on bond, which allocates the different amount of interest expense in each period of interest payment, but at a constant percentage rate.

To Prepare: The journal entry to record the issuance of bonds of Corporation L on January 1, 2017.

Answer 8

(b)

To determine

To Prepare: The amortization schedule through December 2019 for issuance of bonds of Corporation L.

Answer 9

(b)

To determine

To Prepare: The amortization schedule through December 2019 for issuance of bonds of Corporation L.

Answer 10

(c)

To determine

To Prepare: The journal entry to record the accrued interest expense and discount on amortize bond for Corporation L on December 31, 2017.

Answer 11

(c)

To determine

To Prepare: The journal entry to record the accrued interest expense and discount on amortize bond for Corporation L on December 31, 2017.

Answer 12

(d)

To determine

To Prepare: The journal entry to record the payment of interest of Corporation L on January 1, 2018.

Answer 13

(d)

To determine

To Prepare: The journal entry to record the payment of interest of Corporation L on January 1, 2018.

Answer 14

(e)

To determine

To Prepare: The journal entry to record the accrued interest expense and discount on amortize bond for Corporation L on December 31, 2018.

Answer 15

(e)

To determine

To Prepare: The journal entry to record the accrued interest expense and discount on amortize bond for Corporation L on December 31, 2018.

Answer 16

Expert Solution & Answer

Answer 17

Expert Solution & Answer

Answer 18

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Answer 19

Ch. 10 - Prob. 1Q Ch. 10 - Prob. 2Q Ch. 10 - Prob. 3Q Ch. 10 - Prob. 4Q Ch. 10 - Prob. 5Q Ch. 10 - (a) Identify three taxes commonly paid by...Ch. 10 - Prob. 7Q Ch. 10 - Prob. 8Q Ch. 10 - Contrast these types of bonds: (a) Secured and...Ch. 10 - Prob. 10Q

Solution Summary: The author explains that bonds are a kind of interest bearing notes payable, usually issued by companies, universities, and governmental organizations.

To Prepare: The amortization schedule through December 2019 for issuance of bonds of Corporation L.

To Prepare: The journal entry to record the accrued interest expense and discount on amortize bond for Corporation L on December 31, 2017.

To Prepare: The journal entry to record the payment of interest of Corporation L on January 1, 2018.

To Prepare: The journal entry to record the accrued interest expense and discount on amortize bond for Corporation L on December 31, 2018.

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Chapter 10 Solutions