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. Premium on bonds payable: It occurs when the bonds are issued at a high price than the face value. To prepare : Journal entry to record issuance of the bonds.

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Answer 1

Question

Chapter 11, Problem 11.4EX

A.

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.

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

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

B.

To determine

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

C.

To determine

To explain: The reason why the company was able to issue the bonds for $20,811,010 rather than $20,000,000.

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Kubin Company’s relevant range of production is 11,000 to 14,000 units. When it produces and sells 12,500 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 7.20 Direct labor $ 4.20 Variable manufacturing overhead $ 1.70 Fixed manufacturing overhead $ 5.20 Fixed selling expense $ 3.70 Fixed administrative expense $ 2.70 Sales commissions $ 1.20 Variable administrative expense $ 0.70 Required: For financial accounting purposes, what is the total product cost incurred to make 12,500 units? For financial accounting purposes, what is the total period cost incurred to sell 12,500 units? For financial accounting purposes, what is the total product cost incurred to make 14,000 units? For financial accounting purposes, what is the total period cost incurred to sell 11,000 units?

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Answer 2

Question

Chapter 11, Problem 11.4EX

A.

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.

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

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

B.

To determine

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

C.

To determine

To explain: The reason why the company was able to issue the bonds for $20,811,010 rather than $20,000,000.

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Answer 3

Question

Chapter 11, Problem 11.4EX

A.

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.

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

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

B.

To determine

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

C.

To determine

To explain: The reason why the company was able to issue the bonds for $20,811,010 rather than $20,000,000.

Expert Solution & Answer

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Answer 4

Question

Chapter 11, Problem 11.4EX

A.

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.

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

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

B.

To determine

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

C.

To determine

To explain: The reason why the company was able to issue the bonds for $20,811,010 rather than $20,000,000.

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Answer 5

Chapter 11, Problem 11.4EX

A.

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.

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

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

B.

To determine

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

C.

To determine

To explain: The reason why the company was able to issue the bonds for $20,811,010 rather than $20,000,000.

Answer 6

Chapter 11, Problem 11.4EX

A.

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.

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

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

Answer 7

Chapter 11, Problem 11.4EX

A.

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.

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

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

Answer 8

B.

To determine

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

Answer 9

B.

To determine

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

Answer 10

C.

To determine

To explain: The reason why the company was able to issue the bonds for $20,811,010 rather than $20,000,000.

Answer 11

C.

To determine

To explain: The reason why the company was able to issue the bonds for $20,811,010 rather than $20,000,000.

Answer 12

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Answer 13

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Answer 14

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Answer 15

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 premium on bonds.

To explain: The reason why the company was able to issue the bonds for $20,811,010 rather than $20,000,000.

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Chapter 11 Solutions