
(a-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.
Straight-line amortization bond
(a-1)
To Prepare: The
(a-2)
To Prepare: The journal entry to record the issuance of bonds of Company W on January 1, 2014.
(b-1)
To Prepare: The premium on bond amortization table schedule for the first three payments of bonds payable.
(b-2)
To Prepare: The discount on bond amortization table schedule for the first three payments of bonds payable.
(c-1)
To Prepare: The journal entry to record the accrued interest expense and premium on amortize bond for Company S on December 31, 2017.
(c-2)
To Prepare: The journal entry to record the accrued interest expense and discount on amortize bond for Company S on December 31, 2014.
(d-1)
To Prepare: The
(d-2)
To Prepare: The balance sheet presentation for issuance of bonds at December 31, 2014 using the selling price of $98.

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Chapter 10 Solutions
Financial Accounting
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