FUNDAMENTALS OF FINANCIAL ACCOUNTING
6th Edition
ISBN: 9781260664386
Author: PHILLIPS, LIBB
Publisher: MCG
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Chapter 10, Problem 4PA
Comparing Bonds Issued at Par, Discount, and Premium
Net Work Corporation, whose annual accounting period ends on December 31, issued the following bonds:
Date of bonds: January 1, 2018
Maturity amount and date: $200,000 due in 10 years (December 31, 2027)
Interest: 10 percent per year payable each December 31
Date issued: January 1, 2018
Required:
For each of the three independent cases that follow, provide the amounts to be reported on the January 1, 2018, financial statements immediately after the bonds were issued:
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Net Work Corporation, whose annual accounting period ends on December 31, issued the following bonds:
Date of bonds: January 1, 2021
Maturity amount and date: $340,000 due in 10 years (December 31, 2030)
Interest: 11.5 percent per year payable each December 31
Date issued: January 1, 2021
Required:
For each of the three independent cases that follow, provide the amounts to be reported on the January 1, 2021, financial statements
immediately after the bonds were issued: (Deductions should be indicated by a minus sign.)
January 1, 2021-Financial Statements:
ces
Case A
(At 100)
Case B
(at 97)
Case C
(at 103)
a. Bonds payable
$
b. Unamortized premium (discount)
c. Carrying value
340,000
0
$
340,000 $
340,000
13,600
13,600
$ 340,000 $
326,400 $
326,400
Net Work Corporation, whose annual accounting period ends on December 31, issued the following bonds:
Date of bonds: January 1, 2021
Maturity amount and date: $270,000 due in 10 years (December 31, 2030)
Interest: 8.0 percent per year payable each December 31
Date issued: January 1, 2021
Required:
For each of the three independent cases that follow, provide the amounts to be reported on the January 1, 2021, financial statements
immediately after the bonds were issued: (Deductions should be indicated by a minus sign.)
Case A
Case B
Case C
January 1, 2021–Financial Statements:
(At 100)
(at 96)
(at 104)
a. Bonds payable
b. Unamortized premium (discount)
c. Carrying value
Net Work Corporation, whose annual accounting period ends on December 31, issued the following bonds:
Date of bonds: January 1, 2021
Maturity amount and date: $330,000 due in 10 years (December 31, 2030)
Interest: 11.0 percent per year payable each December 31
Date issued: January 1, 2021
Required:
For each of the three independent cases that follow, provide the amounts to be reported on the January 1, 2021, financial statements
immediately after the bonds were issued: (Deductions should be indicated by a minus sign.)
Chapter 10 Solutions
FUNDAMENTALS OF FINANCIAL ACCOUNTING
Ch. 10 - Prob. 1QCh. 10 - Prob. 2QCh. 10 - What three factors influence the dollar amount...Ch. 10 - Prob. 4QCh. 10 - Why is Deferred Revenue considered a liability?Ch. 10 - Prob. 6QCh. 10 - Prob. 7QCh. 10 - If a company has a long-term loan that has only...Ch. 10 - What are the reasons that some bonds are issued at...Ch. 10 - Prob. 10Q
Ch. 10 - Will the stated interest rate be higher than the...Ch. 10 - What is the carrying value of a bond payable?Ch. 10 - What is the difference between a secured bond and...Ch. 10 - Prob. 14QCh. 10 - Prob. 15QCh. 10 - Prob. 16QCh. 10 - Prob. 17QCh. 10 - (Supplement D) Over the period to maturity, why...Ch. 10 - Which of the following best describes Accrued...Ch. 10 - Prob. 2MCCh. 10 - Prob. 3MCCh. 10 - Prob. 4MCCh. 10 - Which of the following does not impact the...Ch. 10 - Which of the following is false when a bond is...Ch. 10 - To determine if a bond will be issued at a...Ch. 10 - A bond is issued at a price of 103 and retired...Ch. 10 - In a recent year. Land O Lakes, Inc., reported (in...Ch. 10 - Prob. 10MCCh. 10 - Recording Unearned Revenues A local theater...Ch. 10 - Prob. 2MECh. 10 - Prob. 3MECh. 10 - Reporting Payroll Tax Liabilities Refer to M10-3....Ch. 10 - Reporting Current and Noncurrent Portions of...Ch. 10 - Recording a Note Payable Greener Pastures...Ch. 10 - Reporting Interest and Long-Term Debt, Including...Ch. 10 - On February 6, 2017, the NYSE bond directory...Ch. 10 - E-Tech Initiatives Limited plans to issue...Ch. 10 - Repeat M10-9 assuming the bonds are issued at...Ch. 10 - Recording Bonds Issued at Face Value Schlitterbahn...Ch. 10 - Prob. 12MECh. 10 - Computing the Debt-to-Assets Ratio and the Times...Ch. 10 - Analyzing the Impact of Transactions on the...Ch. 10 - Prob. 15MECh. 10 - Prob. 16MECh. 10 - Prob. 17MECh. 10 - Prob. 18MECh. 10 - Prob. 19MECh. 10 - Prob. 20MECh. 10 - Prob. 21MECh. 10 - Determining Financial Statement Effects of...Ch. 10 - Recording a Note Payable through Its Time to...Ch. 10 - Recording Payroll Costs McLoyd Company completed...Ch. 10 - Recording Payroll Costs with and without...Ch. 10 - Prob. 5ECh. 10 - Prob. 6ECh. 10 - Preparing Journal Entries to Record Issuance of...Ch. 10 - Preparing Journal Entries to Record Issuance of...Ch. 10 - Prob. 9ECh. 10 - Calculating and Interpreting the Debt-to-Assets...Ch. 10 - Prob. 11ECh. 10 - Prob. 12ECh. 10 - Prob. 13ECh. 10 - Prob. 14ECh. 10 - (Supplement 10B) Recording the Effects of a...Ch. 10 - Prob. 16ECh. 10 - Prob. 17ECh. 10 - Determining Financial Effects of Transactions...Ch. 10 - Recording and Reporting Current Liabilities with...Ch. 10 - Recording and Reporting Current Liabilities...Ch. 10 - Comparing Bonds Issued at Par, Discount, and...Ch. 10 - Determining Financial Statement Reporting of...Ch. 10 - Prob. 6CPCh. 10 - Prob. 7CPCh. 10 - Prob. 8CPCh. 10 - Prob. 9CPCh. 10 - Prob. 10CPCh. 10 - Determining Financial Effects of Transactions...Ch. 10 - Recording and Reporting Current Liabilities with...Ch. 10 - Recording and Reporting Current Liabilities...Ch. 10 - Comparing Bonds Issued at Par, Discount, and...Ch. 10 - Prob. 5PACh. 10 - Prob. 6PACh. 10 - Prob. 7PACh. 10 - Prob. 8PACh. 10 - Prob. 9PACh. 10 - Prob. 1PBCh. 10 - Recording and Reporting Current Liabilities with...Ch. 10 - Prob. 3PBCh. 10 - Prob. 4PBCh. 10 - Recording and Explaining the Early Retirement of...Ch. 10 - Prob. 6PBCh. 10 - Prob. 7PBCh. 10 - Prob. 8PBCh. 10 - Zarina Corp. signed a new installment note on...Ch. 10 - Prob. 1COPCh. 10 - Prob. 1SDCCh. 10 - Prob. 2SDCCh. 10 - Prob. 4SDCCh. 10 - Prob. 5SDCCh. 10 - Prob. 6SDCCh. 10 - Prob. 7SDCCh. 10 - Prob. 8SDCCh. 10 - (Supplement 10C) Preparing a Bond Amortization...Ch. 10 - Nicole thinks that her business, Nicole’s Getaway...
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