Financial Accounting: Tools for Business Decision Making, 8th Edition
Financial Accounting: Tools for Business Decision Making, 8th Edition
8th Edition
ISBN: 9781118953808
Author: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
Publisher: WILEY
Question
Book Icon
Chapter 10, Problem 10.10E

(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.

To prepare: The journal entry to record the sale of these bonds of Company A as on January 1, 2017.

(b)

To determine

To prepare: The balance sheet presentation as on 31st December 2020 for Company A.

(c)

To determine

To explain: The bonds sold at a price more than the face value amount.

Blurred answer
Students have asked these similar questions
Kingbird, Inc. issued $430,000 of 5-year, 7% bonds at 97 on January 1, 2020. The bonds pay interest annually. a.) Prepare the journal entry to record the issuance of the bonds.  Account Titles and Explanation Debit Credit                   b.) Compute the total cost of borrowing for these bonds. Total cost of borrowing   $ ?  c.) Prepare the journal entry to record the issuance of the bonds, assuming the bonds were issued at 101. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit                   d.) Compute the total cost of borrowing for these bonds, assuming the bonds were issued at 101. Total cost of borrowing   $ ?
Oriole Inc. issues $380,000, 10-year, 8% bonds at 97. Prepare the journal entry to record the sale of these bonds on March 1, 2020. what is the account title or explanation?  what is debit or credited ?
Hawar Company issued $400,000 of bonds on January 1, 2020. Required: Prepare the journal entry to record the redemption of the bonds before maturity at 97. Assume the balance in Premium on Bonds Payable is $4,000. For the toolbar presS ALT+F10 (PC) or ALT+EN+F10 (Mac)

Chapter 10 Solutions

Financial Accounting: Tools for Business Decision Making, 8th Edition

Ch. 10 - Prob. 11QCh. 10 - Prob. 12QCh. 10 - Prob. 13QCh. 10 - Lee and Jay are discussing how the market price of...Ch. 10 - Prob. 15QCh. 10 - Prob. 16QCh. 10 - Prob. 17QCh. 10 - Prob. 18QCh. 10 - Prob. 19QCh. 10 - Prob. 20QCh. 10 - Prob. 21QCh. 10 - Prob. 22QCh. 10 - Prob. 23QCh. 10 - Prob. 24QCh. 10 - Prob. 25QCh. 10 - Prob. 26QCh. 10 - Prob. 27QCh. 10 - Prob. 28QCh. 10 - Prob. 29QCh. 10 - Prob. 30QCh. 10 - Prob. 31QCh. 10 - Prob. 10.1BECh. 10 - Prob. 10.2BECh. 10 - Prob. 10.3BECh. 10 - Prob. 10.4BECh. 10 - Prob. 10.5BECh. 10 - Prob. 10.6BECh. 10 - Prob. 10.7BECh. 10 - Prob. 10.8BECh. 10 - Prob. 10.9BECh. 10 - Prob. 10.10BECh. 10 - Prob. 10.11BECh. 10 - Prob. 10.12BECh. 10 - Prob. 10.13BECh. 10 - Prob. 10.14BECh. 10 - Prob. 10.15BECh. 10 - Prob. 10.16BECh. 10 - Prob. 10.17BECh. 10 - Prob. 10.18BECh. 10 - Prob. 10.19BECh. 10 - Prob. 10.1ADIECh. 10 - Prob. 10.1BDIECh. 10 - State whether each of the following statements is...Ch. 10 - Prob. 10.3ADIECh. 10 - Prob. 10.3BDIECh. 10 - Prob. 10.4DIECh. 10 - Prob. 10.1ECh. 10 - Prob. 10.2ECh. 10 - Prob. 10.3ECh. 10 - Prob. 10.4ECh. 10 - Prob. 10.5ECh. 10 - Prob. 10.6ECh. 10 - Prob. 10.7ECh. 10 - Prob. 10.8ECh. 10 - Prob. 10.9ECh. 10 - Prob. 10.10ECh. 10 - Prob. 10.11ECh. 10 - Prob. 10.12ECh. 10 - Prob. 10.13ECh. 10 - Prob. 10.14ECh. 10 - Prob. 10.15ECh. 10 - Prob. 10.16ECh. 10 - Prob. 10.17ECh. 10 - Prob. 10.18ECh. 10 - Prob. 10.19ECh. 10 - Prob. 10.20ECh. 10 - Prob. 10.21ECh. 10 - Prob. 10.22ECh. 10 - Prob. 10.23ECh. 10 - Prob. 10.24ECh. 10 - Prob. 10.25ECh. 10 - Prob. 10.1APCh. 10 - Prob. 10.2APCh. 10 - Prob. 10.3APCh. 10 - Prob. 10.4APCh. 10 - Prob. 10.5APCh. 10 - Prob. 10.6APCh. 10 - Prob. 10.7APCh. 10 - Prob. 10.8APCh. 10 - Prob. 10.9APCh. 10 - Prob. 10.10APCh. 10 - Prob. 10.11APCh. 10 - Prob. 10.12APCh. 10 - Prob. 10.13APCh. 10 - Prob. 10.1CACRCh. 10 - Prob. 10.1EYCTCh. 10 - Prob. 10.2EYCTCh. 10 - Prob. 10.3EYCTCh. 10 - Prob. 10.4EYCTCh. 10 - Prob. 10.5EYCTCh. 10 - DECISION-MAKING ACROSS THE ORGANIZATION On January...Ch. 10 - Prob. 10.9EYCTCh. 10 - Prob. 10.10EYCTCh. 10 - Prob. 10.14EYCTCh. 10 - Prob. 10.1IFRSECh. 10 - Prob. 10.2IFRSECh. 10 - Prob. 10.3IFRSECh. 10 - Prob. 10.4IFRSE
Knowledge Booster
Background pattern image
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College
Text book image
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning
Text book image
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning
Text book image
Financial Accounting
Accounting
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Cengage Learning
Text book image
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:9781337514835
Author:MOYER
Publisher:CENGAGE LEARNING - CONSIGNMENT
Text book image
Excel Applications for Accounting Principles
Accounting
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Cengage Learning