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. Effective-interest amortization method: Effective-interest amortization methodit is an amortization model that apportions the amount of bond discount or premium based on the market interest rate. To prepare : Journal entry to record the amount of cash proceeds from the issuance of the bonds on July 1, Year 1.

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Answer 1

Question

Chapter 11, Problem 11.5APR

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.

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

Effective-interest amortization method: Effective-interest amortization methodit is an amortization model that apportions the amount of bond discount or premium based on the market interest rate.

To prepare: Journal entry to record the amount of cash proceeds from the issuance of the bonds on July 1, Year 1.

2.

A.

To determine

To prepare: Journal entry to record first semiannual interest payment and amortization of bond premium on December 31, Year 1.

3.

To determine

The amount of total interest expense for Year 1.

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SUBJECT - GENERAL ACCOUNT Department E had 4,000 units in Work in Process that were 40% completed at the beginning of the period at a cost of $14,114. Of the $14,114, $8,395 was for material and $5,719 was for conversion costs. 14,000 units of direct materials were added during the period at a cost of $25,963. 15,000 units were completed during the period, and 3,000 units were 75% completed at the end of the period. All materials are added at the beginning of the process. Direct labor was $33,809 and factory overhead was $19,934. If the average cost method is used what would be the conversion cost per unit? a. $1.91 b. $5.31 c. $3.45 d. $1.73

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Answer 2

Question

Chapter 11, Problem 11.5APR

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.

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

Effective-interest amortization method: Effective-interest amortization methodit is an amortization model that apportions the amount of bond discount or premium based on the market interest rate.

To prepare: Journal entry to record the amount of cash proceeds from the issuance of the bonds on July 1, Year 1.

2.

A.

To determine

To prepare: Journal entry to record first semiannual interest payment and amortization of bond premium on December 31, Year 1.

3.

To determine

The amount of total interest expense for Year 1.

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Answer 3

Question

Chapter 11, Problem 11.5APR

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.

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

Effective-interest amortization method: Effective-interest amortization methodit is an amortization model that apportions the amount of bond discount or premium based on the market interest rate.

To prepare: Journal entry to record the amount of cash proceeds from the issuance of the bonds on July 1, Year 1.

2.

A.

To determine

To prepare: Journal entry to record first semiannual interest payment and amortization of bond premium on December 31, Year 1.

3.

To determine

The amount of total interest expense for Year 1.

Expert Solution & Answer

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Answer 4

Question

Chapter 11, Problem 11.5APR

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.

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

Effective-interest amortization method: Effective-interest amortization methodit is an amortization model that apportions the amount of bond discount or premium based on the market interest rate.

To prepare: Journal entry to record the amount of cash proceeds from the issuance of the bonds on July 1, Year 1.

2.

A.

To determine

To prepare: Journal entry to record first semiannual interest payment and amortization of bond premium on December 31, Year 1.

3.

To determine

The amount of total interest expense for Year 1.

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Answer 5

Chapter 11, Problem 11.5APR

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.

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

Effective-interest amortization method: Effective-interest amortization methodit is an amortization model that apportions the amount of bond discount or premium based on the market interest rate.

To prepare: Journal entry to record the amount of cash proceeds from the issuance of the bonds on July 1, Year 1.

2.

A.

To determine

To prepare: Journal entry to record first semiannual interest payment and amortization of bond premium on December 31, Year 1.

3.

To determine

The amount of total interest expense for Year 1.

Answer 6

Chapter 11, Problem 11.5APR

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.

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

Effective-interest amortization method: Effective-interest amortization methodit is an amortization model that apportions the amount of bond discount or premium based on the market interest rate.

To prepare: Journal entry to record the amount of cash proceeds from the issuance of the bonds on July 1, Year 1.

Answer 7

Chapter 11, Problem 11.5APR

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.

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

Effective-interest amortization method: Effective-interest amortization methodit is an amortization model that apportions the amount of bond discount or premium based on the market interest rate.

To prepare: Journal entry to record the amount of cash proceeds from the issuance of the bonds on July 1, Year 1.

Answer 8

2.

A.

To determine

To prepare: Journal entry to record first semiannual interest payment and amortization of bond premium on December 31, Year 1.

Answer 9

2.

A.

To determine

To prepare: Journal entry to record first semiannual interest payment and amortization of bond premium on December 31, Year 1.

Answer 10

3.

To determine

The amount of total interest expense for Year 1.

Answer 11

3.

To determine

The amount of total interest expense for Year 1.

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 semiannual interest payment and amortization of bond premium on December 31, Year 1.

The amount of total interest expense for Year 1.

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Chapter 11 Solutions