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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Students have asked these similar questions

Primo Industries collected $107,474 from customers in 2015. Of the amount collected, $27,373 was from services performed in 2014. In addition, Primo performed services worth $41,264 in 2015, which will not be collected until 2016. Primo Industries also paid $76,280 for expenses in 2015. Of the amount paid, $29,224 was for expenses incurred on account in 2014. In addition, Primo incurred $42,536 of expenses in 2015, which will not be paid until 2016. Compute 2015 cash-basis net income.

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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.

Expert Solution & Answer

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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 - Prob. 3DQ Ch. 11 - A corporation issues 26,000,000 of 9% bonds to...Ch. 11 - Prob. 5DQ Ch. 11 - The following data relate to a 2,000,000, 8% bond...Ch. 11 - Prob. 7DQ Ch. 11 - Fleeson Company needs additional funds to purchase...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