
(1)
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.
Redemption of Bonds
The process of repaying the sale amount of bonds to bondholders at the time of maturity or before the maturity period is called as redemption of bonds. It is otherwise called as retirement of bonds.
To prepare: The
(2)
To prepare: The journal entry to record redemption of bonds at the time of maturity period for Company T on June 30, 2015.
(3)
To prepare: The journal entry to record conversion of bonds at the time of maturity period for Company P on December 31, 2015.

Want to see the full answer?
Check out a sample textbook solution
Chapter 10 Solutions
FINANCIAL ACCOUNTING W/WILEY+ >IP<
- What is the total fixed cost when nothing is produced?arrow_forwardwhat the answer a b c ? general accounting questionarrow_forwardAssume the following ratios are constant: • Total asset turnover = 3.10 . Profit margin = 5.2% • Equity multiplier = 1.35 • Payout ratio = 30% What is the sustainable growth rate?arrow_forward
- A one-year, $22,400, 10% note is signed on May 1. If the note is repaid on November 1 of the same year, how much interest expense is incurred?arrow_forwardDon't use ai solution given correct answer general accountingarrow_forwardWhat is the total manufacturing cost per unit of this accounting question?arrow_forward
- Sterling Apparel Ltd. had a balance in the Accounts Receivable account of $850,000 at the beginning of the year and a balance of $890,000 at the end of the year. Net credit sales during the year amounted to $8,500,000. What is the average collection period in terms of days?arrow_forwardProvide correct answer this general accounting questionarrow_forwardsolve plz nowarrow_forward
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education





