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. Discount on bonds: It occurs when the bonds are issued at a low price than the face value. Premium on bonds: It occurs when the bonds are issued at a high price than the face value. To identify : The issued price of bonds.

Question

Bergo Bay's accounting system generated the following account balances on December 31. The company's manager knows something is wrong with this list of balances because it does not show any balance for Work in Process Inventory and the accrued factory payroll (Factory Wages Payable) has not been recorded. Debit Credit Notes payable Cash Accounts receivable Raw materials inventory Work in process inventory Finished goods inventory Prepaid rent Accounts payable Common stock Retained earnings (prior year) Sales Cost of goods sold $ 75,000 44,000 27,000 0 12,000 4,000 $ 9,800 12,800 40,000 76,000 221,400 Factory overhead General and administrative expenses Totals 118,000 27,000 53,000 $ 360,000 $ 360,000 These six documents must be processed to bring the accounting records up to date. Materials requisition 10: Materials requisition 11: Materials requisition 12: Labor time ticket 52: Labor time ticket 53: $ 4,500 direct materials to Job 402 $ 7,000 direct materials to Job 404 $ 2,100…

Answer 1

Question

Chapter 11, Problem 6DQ

(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.

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

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

To identify: The issued price of bonds.

(B)

To determine

To identify: The unamortized amount of discount or premium account at the beginning of the period.

(C)

To determine

To identify: The account that was debited to amortize the discount or premium.

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Bergo Bay's accounting system generated the following account balances on December 31. The company's manager knows something is wrong with this list of balances because it does not show any balance for Work in Process Inventory and the accrued factory payroll (Factory Wages Payable) has not been recorded. Debit Credit Notes payable Cash Accounts receivable Raw materials inventory Work in process inventory Finished goods inventory Prepaid rent Accounts payable Common stock Retained earnings (prior year) Sales Cost of goods sold $ 75,000 44,000 27,000 0 12,000 4,000 $ 9,800 12,800 40,000 76,000 221,400 Factory overhead General and administrative expenses Totals 118,000 27,000 53,000 $ 360,000 $ 360,000 These six documents must be processed to bring the accounting records up to date. Materials requisition 10: Materials requisition 11: Materials requisition 12: Labor time ticket 52: Labor time ticket 53: $ 4,500 direct materials to Job 402 $ 7,000 direct materials to Job 404 $ 2,100…

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General accounting

Answer 2

Question

Chapter 11, Problem 6DQ

(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.

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

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

To identify: The issued price of bonds.

(B)

To determine

To identify: The unamortized amount of discount or premium account at the beginning of the period.

(C)

To determine

To identify: The account that was debited to amortize the discount or premium.

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Answer 3

Question

Chapter 11, Problem 6DQ

(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.

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

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

To identify: The issued price of bonds.

(B)

To determine

To identify: The unamortized amount of discount or premium account at the beginning of the period.

(C)

To determine

To identify: The account that was debited to amortize the discount or premium.

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Answer 4

Question

Chapter 11, Problem 6DQ

(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.

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

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

To identify: The issued price of bonds.

(B)

To determine

To identify: The unamortized amount of discount or premium account at the beginning of the period.

(C)

To determine

To identify: The account that was debited to amortize the discount or premium.

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Answer 5

Chapter 11, Problem 6DQ

(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.

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

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

To identify: The issued price of bonds.

(B)

To determine

To identify: The unamortized amount of discount or premium account at the beginning of the period.

(C)

To determine

To identify: The account that was debited to amortize the discount or premium.

Answer 6

Chapter 11, Problem 6DQ

(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.

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

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

To identify: The issued price of bonds.

Answer 7

Chapter 11, Problem 6DQ

(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.

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

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

To identify: The issued price of bonds.

Answer 8

(B)

To determine

To identify: The unamortized amount of discount or premium account at the beginning of the period.

Answer 9

(B)

To determine

To identify: The unamortized amount of discount or premium account at the beginning of the period.

Answer 10

(C)

To determine

To identify: The account that was debited to amortize the discount or premium.

Answer 11

(C)

To determine

To identify: The account that was debited to amortize the discount or premium.

Answer 12

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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 identify: The unamortized amount of discount or premium account at the beginning of the period.

To identify: The account that was debited to amortize the discount or premium.

Chapter 11 Solutions