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 journal entry to record payment of interest expenses for Company Z on January 1, 2014.

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Answer 1

Question

Chapter 10, Problem 10.7BP

(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.

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 journal entry to record payment of interest expenses for Company Z on January 1, 2014.

(b)

To determine

To Prepare: The journal entry to record the accrued interest expense and discount on amortize bond for Company Z on December 31, 2014.

(c)

To determine

To Prepare: The journal entry to record the redemption on bonds for Company Z on January 1, 2015.

(d)

To determine

To Prepare: The adjusting journal entry to record the accrued interest expense and discount on amortize bond for Company Z on December 31, 2015.

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Answer 2

Question

Chapter 10, Problem 10.7BP

(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.

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 journal entry to record payment of interest expenses for Company Z on January 1, 2014.

(b)

To determine

To Prepare: The journal entry to record the accrued interest expense and discount on amortize bond for Company Z on December 31, 2014.

(c)

To determine

To Prepare: The journal entry to record the redemption on bonds for Company Z on January 1, 2015.

(d)

To determine

To Prepare: The adjusting journal entry to record the accrued interest expense and discount on amortize bond for Company Z on December 31, 2015.

Expert Solution & Answer

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Answer 3

Question

Chapter 10, Problem 10.7BP

(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.

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 journal entry to record payment of interest expenses for Company Z on January 1, 2014.

(b)

To determine

To Prepare: The journal entry to record the accrued interest expense and discount on amortize bond for Company Z on December 31, 2014.

(c)

To determine

To Prepare: The journal entry to record the redemption on bonds for Company Z on January 1, 2015.

(d)

To determine

To Prepare: The adjusting journal entry to record the accrued interest expense and discount on amortize bond for Company Z on December 31, 2015.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 10, Problem 10.7BP

(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.

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 journal entry to record payment of interest expenses for Company Z on January 1, 2014.

(b)

To determine

To Prepare: The journal entry to record the accrued interest expense and discount on amortize bond for Company Z on December 31, 2014.

(c)

To determine

To Prepare: The journal entry to record the redemption on bonds for Company Z on January 1, 2015.

(d)

To determine

To Prepare: The adjusting journal entry to record the accrued interest expense and discount on amortize bond for Company Z on December 31, 2015.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 5

Chapter 10, Problem 10.7BP

(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.

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 journal entry to record payment of interest expenses for Company Z on January 1, 2014.

(b)

To determine

To Prepare: The journal entry to record the accrued interest expense and discount on amortize bond for Company Z on December 31, 2014.

(c)

To determine

To Prepare: The journal entry to record the redemption on bonds for Company Z on January 1, 2015.

(d)

To determine

To Prepare: The adjusting journal entry to record the accrued interest expense and discount on amortize bond for Company Z on December 31, 2015.

Answer 6

Chapter 10, Problem 10.7BP

(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.

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 journal entry to record payment of interest expenses for Company Z on January 1, 2014.

Answer 7

Chapter 10, Problem 10.7BP

(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.

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 journal entry to record payment of interest expenses for Company Z on January 1, 2014.

Answer 8

(b)

To determine

To Prepare: The journal entry to record the accrued interest expense and discount on amortize bond for Company Z on December 31, 2014.

Answer 9

(b)

To determine

To Prepare: The journal entry to record the accrued interest expense and discount on amortize bond for Company Z on December 31, 2014.

Answer 10

(c)

To determine

To Prepare: The journal entry to record the redemption on bonds for Company Z on January 1, 2015.

Answer 11

(c)

To determine

To Prepare: The journal entry to record the redemption on bonds for Company Z on January 1, 2015.

Answer 12

(d)

To determine

To Prepare: The adjusting journal entry to record the accrued interest expense and discount on amortize bond for Company Z on December 31, 2015.

Answer 13

(d)

To determine

To Prepare: The adjusting journal entry to record the accrued interest expense and discount on amortize bond for Company Z on December 31, 2015.

Answer 14

Expert Solution & Answer

Answer 15

Expert Solution & Answer

Answer 16

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Answer 17

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

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To Prepare: The journal entry to record the accrued interest expense and discount on amortize bond for Company Z on December 31, 2014.

To Prepare: The journal entry to record the redemption on bonds for Company Z on January 1, 2015.

To Prepare: The adjusting journal entry to record the accrued interest expense and discount on amortize bond for Company Z on December 31, 2015.

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