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.
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.
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.
Definition Definition Calculates the present value of a bond's expected future periodic coupon payments. Bond valuation determines the theoretical fair value of a particular bond and helps investors estimate what rate of return they could expect. The bond's theoretical fair value is computed by discounting the future cash flows or coupon payments by an applicable discount rate.
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.
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.
I want to correct answer general accounting question
Here are comparative balance sheets for Concord Company.
CONCORD COMPANY
Comparative Balance Sheets
December 31
Assets
2022
2021
Cash
$81,760
$24,640
Accounts receivable
97,440
85,120
Inventories
190,400
213,920
Land
80,640
112,000
Equipment
291,200
224,000
Accumulated depreciation
(73,920)
(35,840)
Total
$667,520
$623,840
Liabilities and Stockholders' Equity
Accounts payable
$41,440
$52,640
Bonds payable
168,000
235,200
Common stock ($1 par)
241,920
194,880
Retained earnings
216,160
141,120
Total
$667,520
$623,840
Additional information:
1.
Net income for 2022 was $112,000.
2.
Cash dividends of $36,960 were declared and paid.
3.
Bonds payable amounting to $67,200 were redeemed for cash $67,200.
4.
Common stock was issued for $47,040 cash.
5.
Equipment that cost $56,000 and had a book value of $33,600 was sold for $40,320 during 2022; land was sold at cost.