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. Bonds Payable: Bonds payable are referred to long-term debts of the business, issued to various lenders known as bondholders, generally in multiples of $1,000 per bond, to raise fund for financing the operations. Discount on bonds payable: It occurs when the bonds are issued at a low price than the face value. To prepare : Journal entry to record issuance of the bonds.

Question

Sweet Solutions reports net income of $375,000, sales of $6,250,000, and average assets of $850,000. What is the profit margin?

Answer 1

Question

Chapter 11, Problem 11.3EX

A.

1.

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.

Bonds Payable: Bonds payable are referred to long-term debts of the business, issued to various lenders known as bondholders, generally in multiples of $1,000 per bond, to raise fund for financing the operations.

Discount on bonds payable: It occurs when the bonds are issued at a low price than the face value.

To prepare: Journal entry to record issuance of the bonds.

2.

To determine

To prepare: Journal entry to record first interest payment and amortization of discount on bonds.

3.

To determine

To prepare: Journal entry to record second interest payment and amortization of discount on bonds.

B.

To determine

The amount of bond interest expense for first year.

C.

To determine

To explain: The reason why the company was able to issue the bonds for $9,594,415 rather than $10,000,000.

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Sweet Solutions reports net income of $375,000, sales of $6,250,000, and average assets of $850,000. What is the profit margin?

Kimberly resides in Jamaica and applied the following rules to losses carried forward in her business. Which rule was incorrectly applied? A.The deduction allowed for prior year losses (PYL) is 50 percent of the net income for the respective year. B.Prior year losses which are not utilized in the current year cannot be applied against net income of subsequent years C.Net income is the total income less all exemptions and allowable deductions excluding the specific losses. D.There is no cap on the number of years for which losses may be carried forward.

Please explain the solution to this financial accounting problem with accurate explanations.

Answer 2

Question

Chapter 11, Problem 11.3EX

A.

1.

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.

Bonds Payable: Bonds payable are referred to long-term debts of the business, issued to various lenders known as bondholders, generally in multiples of $1,000 per bond, to raise fund for financing the operations.

Discount on bonds payable: It occurs when the bonds are issued at a low price than the face value.

To prepare: Journal entry to record issuance of the bonds.

2.

To determine

To prepare: Journal entry to record first interest payment and amortization of discount on bonds.

3.

To determine

To prepare: Journal entry to record second interest payment and amortization of discount on bonds.

B.

To determine

The amount of bond interest expense for first year.

C.

To determine

To explain: The reason why the company was able to issue the bonds for $9,594,415 rather than $10,000,000.

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Answer 3

Question

Chapter 11, Problem 11.3EX

A.

1.

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.

Bonds Payable: Bonds payable are referred to long-term debts of the business, issued to various lenders known as bondholders, generally in multiples of $1,000 per bond, to raise fund for financing the operations.

Discount on bonds payable: It occurs when the bonds are issued at a low price than the face value.

To prepare: Journal entry to record issuance of the bonds.

2.

To determine

To prepare: Journal entry to record first interest payment and amortization of discount on bonds.

3.

To determine

To prepare: Journal entry to record second interest payment and amortization of discount on bonds.

B.

To determine

The amount of bond interest expense for first year.

C.

To determine

To explain: The reason why the company was able to issue the bonds for $9,594,415 rather than $10,000,000.

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Answer 4

Question

Chapter 11, Problem 11.3EX

A.

1.

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.

Bonds Payable: Bonds payable are referred to long-term debts of the business, issued to various lenders known as bondholders, generally in multiples of $1,000 per bond, to raise fund for financing the operations.

Discount on bonds payable: It occurs when the bonds are issued at a low price than the face value.

To prepare: Journal entry to record issuance of the bonds.

2.

To determine

To prepare: Journal entry to record first interest payment and amortization of discount on bonds.

3.

To determine

To prepare: Journal entry to record second interest payment and amortization of discount on bonds.

B.

To determine

The amount of bond interest expense for first year.

C.

To determine

To explain: The reason why the company was able to issue the bonds for $9,594,415 rather than $10,000,000.

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Answer 5

Chapter 11, Problem 11.3EX

A.

1.

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.

Bonds Payable: Bonds payable are referred to long-term debts of the business, issued to various lenders known as bondholders, generally in multiples of $1,000 per bond, to raise fund for financing the operations.

Discount on bonds payable: It occurs when the bonds are issued at a low price than the face value.

To prepare: Journal entry to record issuance of the bonds.

2.

To determine

To prepare: Journal entry to record first interest payment and amortization of discount on bonds.

3.

To determine

To prepare: Journal entry to record second interest payment and amortization of discount on bonds.

B.

To determine

The amount of bond interest expense for first year.

C.

To determine

To explain: The reason why the company was able to issue the bonds for $9,594,415 rather than $10,000,000.

Answer 6

Chapter 11, Problem 11.3EX

A.

1.

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.

Bonds Payable: Bonds payable are referred to long-term debts of the business, issued to various lenders known as bondholders, generally in multiples of $1,000 per bond, to raise fund for financing the operations.

Discount on bonds payable: It occurs when the bonds are issued at a low price than the face value.

To prepare: Journal entry to record issuance of the bonds.

Answer 7

Chapter 11, Problem 11.3EX

A.

1.

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.

Bonds Payable: Bonds payable are referred to long-term debts of the business, issued to various lenders known as bondholders, generally in multiples of $1,000 per bond, to raise fund for financing the operations.

Discount on bonds payable: It occurs when the bonds are issued at a low price than the face value.

To prepare: Journal entry to record issuance of the bonds.

Answer 8

2.

To determine

To prepare: Journal entry to record first interest payment and amortization of discount on bonds.

Answer 9

2.

To determine

To prepare: Journal entry to record first interest payment and amortization of discount on bonds.

Answer 10

3.

To determine

To prepare: Journal entry to record second interest payment and amortization of discount on bonds.

Answer 11

3.

To determine

To prepare: Journal entry to record second interest payment and amortization of discount 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

To explain: The reason why the company was able to issue the bonds for $9,594,415 rather than $10,000,000.

Answer 15

C.

To determine

To explain: The reason why the company was able to issue the bonds for $9,594,415 rather than $10,000,000.

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 12%...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...

Solution Summary: The author explains that 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 prepare: Journal entry to record first interest payment and amortization of discount on bonds.

To prepare: Journal entry to record second interest payment and amortization of discount on bonds.

The amount of bond interest expense for first year.

To explain: The reason why the company was able to issue the bonds for $9,594,415 rather than $10,000,000.

Chapter 11 Solutions