To Journalize: Sale of the bonds.

Question

A company has a net income of $790,000 and 55,300 outstanding shares. What is the earnings per share? (Subject: Financial accounting 4 marks)

Answer 1

Question

Chapter 11, Problem 11.15EX

a. 1

To determine

To Journalize: Sale of the bonds.

a. 2

To determine

To Journalize: First semiannual interest payment and amortization of premium on bonds.

a. 3

To determine

To Journalize: Second semiannual interest payment and amortization of premium on bonds.

b.

To determine

The amount of bond interest expense for first year.

c.

To determine

Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing money from investors to raise fund for financing the operations.

To explain: The reason why the company was able to issue the bonds for $32,433,150 rather than $30,000,000.

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A company has a net income of $790,000 and 55,300 outstanding shares. What is the earnings per share? (Subject: Financial accounting 4 marks)

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Answer 2

Question

Chapter 11, Problem 11.15EX

a. 1

To determine

To Journalize: Sale of the bonds.

a. 2

To determine

To Journalize: First semiannual interest payment and amortization of premium on bonds.

a. 3

To determine

To Journalize: Second semiannual interest payment and amortization of premium on bonds.

b.

To determine

The amount of bond interest expense for first year.

c.

To determine

Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing money from investors to raise fund for financing the operations.

To explain: The reason why the company was able to issue the bonds for $32,433,150 rather than $30,000,000.

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Answer 3

Question

Chapter 11, Problem 11.15EX

a. 1

To determine

To Journalize: Sale of the bonds.

a. 2

To determine

To Journalize: First semiannual interest payment and amortization of premium on bonds.

a. 3

To determine

To Journalize: Second semiannual interest payment and amortization of premium on bonds.

b.

To determine

The amount of bond interest expense for first year.

c.

To determine

Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing money from investors to raise fund for financing the operations.

To explain: The reason why the company was able to issue the bonds for $32,433,150 rather than $30,000,000.

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Answer 4

Question

Chapter 11, Problem 11.15EX

a. 1

To determine

To Journalize: Sale of the bonds.

a. 2

To determine

To Journalize: First semiannual interest payment and amortization of premium on bonds.

a. 3

To determine

To Journalize: Second semiannual interest payment and amortization of premium on bonds.

b.

To determine

The amount of bond interest expense for first year.

c.

To determine

Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing money from investors to raise fund for financing the operations.

To explain: The reason why the company was able to issue the bonds for $32,433,150 rather than $30,000,000.

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Answer 5

Chapter 11, Problem 11.15EX

a. 1

To determine

To Journalize: Sale of the bonds.

a. 2

To determine

To Journalize: First semiannual interest payment and amortization of premium on bonds.

a. 3

To determine

To Journalize: Second semiannual interest payment and amortization of premium on bonds.

b.

To determine

The amount of bond interest expense for first year.

c.

To determine

Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing money from investors to raise fund for financing the operations.

To explain: The reason why the company was able to issue the bonds for $32,433,150 rather than $30,000,000.

Answer 6

Chapter 11, Problem 11.15EX

a. 1

To determine

To Journalize: Sale of the bonds.

Answer 7

Chapter 11, Problem 11.15EX

a. 1

To determine

To Journalize: Sale of the bonds.

Answer 8

a. 2

To determine

To Journalize: First semiannual interest payment and amortization of premium on bonds.

Answer 9

a. 2

To determine

To Journalize: First semiannual interest payment and amortization of premium on bonds.

Answer 10

a. 3

To determine

To Journalize: Second semiannual interest payment and amortization of premium on bonds.

Answer 11

a. 3

To determine

To Journalize: Second semiannual interest payment and amortization of premium on bonds.

Answer 12

b.

To determine

The amount of bond interest expense for first year.

Answer 13

b.

To determine

The amount of bond interest expense for first year.

Answer 14

c.

To determine

Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing money from investors to raise fund for financing the operations.

To explain: The reason why the company was able to issue the bonds for $32,433,150 rather than $30,000,000.

Answer 15

c.

To determine

Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing money from investors to raise fund for financing the operations.

To explain: The reason why the company was able to issue the bonds for $32,433,150 rather than $30,000,000.

Answer 16

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Answer 27

Ch. 11 - Describe the two distinct obligations incurred by...Ch. 11 - Explain the meaning of each of the following terms...Ch. 11 - If you asked your broker to purchase for you a 11%...Ch. 11 - A corporation issues 26,000,000 of 9% bonds to...Ch. 11 - If bonds issued by a corporation are sold at a...Ch. 11 - Prob. 6DQ Ch. 11 - Bonds Payable has a balance of 5,000,000 and...Ch. 11 - Prob. 8DQ Ch. 11 - Prob. 9DQ Ch. 11 - Issuing bonds at face amount On January 1, the...

To Journalize: Sale of the bonds.

Solution Summary: The author describes the effective-interest amortization method, which apportions the amount of bond discount or premium based on the market interest rate.

To Journalize: Sale of the bonds.

To Journalize: First semiannual interest payment and amortization of premium on bonds.

To Journalize: Second semiannual interest payment and amortization of premium on bonds.

The amount of bond interest expense for first year.

Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing money from investors to raise fund for financing the operations.

To explain: The reason why the company was able to issue the bonds for $32,433,150 rather than $30,000,000.

Chapter 11 Solutions

To Journalize: Sale of the bonds.

Solution Summary: The author describes the effective-interest amortization method, which apportions the amount of bond discount or premium based on the market interest rate.

To Journalize: Sale of the bonds.

To Journalize: First semiannual interest payment and amortization of premium on bonds.

To Journalize: Second semiannual interest payment and amortization of premium on bonds.

The amount of bond interest expense for first year.

Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing money from investors to raise fund for financing the operations. To explain: The reason why the company was able to issue the bonds for $32,433,150 rather than $30,000,000.

Chapter 11 Solutions

Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing money from investors to raise fund for financing the operations.

To explain: The reason why the company was able to issue the bonds for $32,433,150 rather than $30,000,000.