FINANCIAL ACCT.FUND.(LOOSELEAF)
7th Edition
ISBN: 9781260482867
Author: Wild
Publisher: MCG
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Question
Chapter 10, Problem 10QS
To determine
Bonds:
Bonds are financial instrument, generally issued to raise debt usually for projects which require large amount of funds, with an assurance to repay the sum with applicable interest.
Convertible Bonds:
Convertible bonds are the bonds which can be converted into shares of stock. Bonds retire automatically when they are converted into shares of stock.
To prepare:
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Students have asked these similar questions
On July 1, Aloha Company exercises a call option that requires Aloha to pay $265,200 for its outstanding bonds that have a carrying
value of $268,200 and a par value of $260,000. The company exercises the call option after the semiannual interest is paid the day
before on June 30.
Record the entry to retire the bonds.
View transaction list
Journal entry worksheet
1
Record the retirement of bonds before maturity.
Note: Enter debits before credits.
Date
July 01
Record entry
General Journal
Clear entry
Debit
Credit
View general journal
July 1, Aloha Co. exercises a call option that requires Aloha to pay $244,800 for Its outstanding bonds that have a carrying value of
48,200 and par value of $240,000. The company exercises the call option after the semlannual interest is pald the day before on
ne 30,
cord the entry to retire the bonds.
Mahalo Boat Adventure Inc. has a July 31 year-end. It showed the following partial amortization schedules regarding two bond issues:
"Pic"
a. Were the bond B issued at a premium and/or discount?
- Discount
b. Journalize the issuance of bond B on April 1, 2021.
c. What is the contract interest rate for the issue bond B?
- 8%
d. Interest of how much is paid how often for bond B issued?
- 10,800 Quarterly
e. What is the term of bond B issue?
f. Show how bond B would appear on the balance sheet under non-current liabilities at July 31, 2029.
g. Calculate the bond B interest expense that would appear on the income statement for the year ended July 31, 2030.
h. Independent of (a) through (g), assume that bond B issues was retired on December 1, 2030, at 97. Record the entries.
- Record the interest paid on bonds.
- Record the retired bonds.
Chapter 10 Solutions
FINANCIAL ACCT.FUND.(LOOSELEAF)
Ch. 10 - Prob. 1MCQCh. 10 - Prob. 2MCQCh. 10 - Prob. 3MCQCh. 10 - Prob. 4MCQCh. 10 - Prob. 5MCQCh. 10 - Prob. 1DQCh. 10 - Prob. 2DQCh. 10 - Prob. 3DQCh. 10 - Prob. 4DQCh. 10 - Prob. 5DQ
Ch. 10 - Prob. 6DQCh. 10 - Prob. 7DQCh. 10 - Prob. 8DQCh. 10 - Prob. 9DQCh. 10 - Prob. 10DQCh. 10 - Prob. 11DQCh. 10 - Prob. 12DQCh. 10 - Prob. 13DQCh. 10 - Prob. 14DQCh. 10 - Prob. 15DQCh. 10 - Prob. 16DQCh. 10 - Prob. 17DQCh. 10 - Prob. 18DQCh. 10 - Prob. 19DQCh. 10 - Prob. 1QSCh. 10 - Prob. 2QSCh. 10 - Prob. 3QSCh. 10 - Prob. 4QSCh. 10 - Prob. 5QSCh. 10 - Prob. 6QSCh. 10 - Prob. 7QSCh. 10 - Prob. 8QSCh. 10 - Prob. 9QSCh. 10 - Prob. 10QSCh. 10 - Prob. 11QSCh. 10 - Prob. 12QSCh. 10 - Prob. 13QSCh. 10 - Prob. 14QSCh. 10 - Prob. 15QSCh. 10 - Prob. 16QSCh. 10 - Prob. 17QSCh. 10 - Prob. 18QSCh. 10 - Prob. 19QSCh. 10 - Prob. 20QSCh. 10 - Prob. 1ECh. 10 - Prob. 2ECh. 10 - Prob. 3ECh. 10 - Prob. 4ECh. 10 - Prob. 5ECh. 10 - Prob. 6ECh. 10 - Prob. 7ECh. 10 - Prob. 8ECh. 10 - Prob. 9ECh. 10 - Prob. 10ECh. 10 - Prob. 11ECh. 10 - Prob. 12ECh. 10 - Prob. 13ECh. 10 - Prob. 14ECh. 10 - Prob. 15ECh. 10 - Prob. 16ECh. 10 - Prob. 17ECh. 10 - Prob. 18ECh. 10 - Prob. 19ECh. 10 - Prob. 20ECh. 10 - Prob. 21ECh. 10 - Prob. 22ECh. 10 - Prob. 1PSACh. 10 - Prob. 2PSACh. 10 - Prob. 3PSACh. 10 - Prob. 4PSACh. 10 - Prob. 5PSACh. 10 - Prob. 6PSACh. 10 - Prob. 7PSACh. 10 - Prob. 8PSACh. 10 - Prob. 9PSACh. 10 - Prob. 10PSACh. 10 - Prob. 11PSACh. 10 - Prob. 12PSACh. 10 - Prob. 1PSBCh. 10 - Prob. 2PSBCh. 10 - Prob. 3PSBCh. 10 - Prob. 4PSBCh. 10 - Prob. 5PSBCh. 10 - Prob. 6PSBCh. 10 - Prob. 7PSBCh. 10 - Prob. 8PSBCh. 10 - Prob. 9PSBCh. 10 - Prob. 10PSBCh. 10 - Prob. 11PSBCh. 10 - Prob. 12PSBCh. 10 - Prob. 10SPCh. 10 - Prob. 1AACh. 10 - Prob. 2AACh. 10 - Prob. 3AACh. 10 - Prob. 1BTNCh. 10 - Prob. 2BTNCh. 10 - Prob. 3BTNCh. 10 - Prob. 4BTNCh. 10 - Prob. 5BTNCh. 10 - Prob. 6BTN
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