(a)
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
(b)
To prepare: The
(c)
To prepare: The
(d)
To prepare: The journal entry to record the payment of interest for Corporation CMV on April 1, 2014.
(e)
To prepare: The adjusting entry to record the accrual of interest for Corporation CMV on December 31, 2014.
(f)
To prepare: The journal entry to record the payment of interest and redemption of bonds for Corporation CMV on January 1, 2015.
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Chapter 10 Solutions
Financial Accounting
- Crestwood Industries mixes together sugarcane residue and ethanol. After joint manufacturing costs of $3,500 have been incurred, the mixture separates into two products, biomass fuel and industrial alcohol. At the split-off point, biomass fuel can be sold for $6,500, and the alcohol can be sold for $10,500. The biomass fuel can be further processed at a cost of $7,500 to make bio-bricks, which could be sold for $17,500. The alcohol can be further processed at a cost of $8,500 to make a disinfectant, which could be sold for $16,500.What is the net increase (decrease) in operating income from bio-bricks?arrow_forwardNet loss for the year?arrow_forwardhello teacher please solve questingarrow_forward
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