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. Premium on bonds payable: It occurs when the bonds are issued at a high price than the face value. 1. To prepare: Journal entry to record issuance of bonds payable at face value.

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Answer 1

Question

Chapter 12, Problem 12.24E

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.

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

1.

To prepare: Journal entry to record issuance of bonds payable at face value.

2.

To determine

To prepare: Journal entry to record issuance of bonds payable at discount.

3.

To determine

To prepare: Journal entry to record issuance of bonds payable at premium.

4.

To determine

To explain: The bond price which results the most interest expense.

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Answer 2

Question

Chapter 12, Problem 12.24E

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.

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

1.

To prepare: Journal entry to record issuance of bonds payable at face value.

2.

To determine

To prepare: Journal entry to record issuance of bonds payable at discount.

3.

To determine

To prepare: Journal entry to record issuance of bonds payable at premium.

4.

To determine

To explain: The bond price which results the most interest expense.

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Answer 3

Question

Chapter 12, Problem 12.24E

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.

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

1.

To prepare: Journal entry to record issuance of bonds payable at face value.

2.

To determine

To prepare: Journal entry to record issuance of bonds payable at discount.

3.

To determine

To prepare: Journal entry to record issuance of bonds payable at premium.

4.

To determine

To explain: The bond price which results the most interest expense.

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Answer 4

Question

Chapter 12, Problem 12.24E

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.

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

1.

To prepare: Journal entry to record issuance of bonds payable at face value.

2.

To determine

To prepare: Journal entry to record issuance of bonds payable at discount.

3.

To determine

To prepare: Journal entry to record issuance of bonds payable at premium.

4.

To determine

To explain: The bond price which results the most interest expense.

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Answer 5

Chapter 12, Problem 12.24E

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.

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

1.

To prepare: Journal entry to record issuance of bonds payable at face value.

2.

To determine

To prepare: Journal entry to record issuance of bonds payable at discount.

3.

To determine

To prepare: Journal entry to record issuance of bonds payable at premium.

4.

To determine

To explain: The bond price which results the most interest expense.

Answer 6

Chapter 12, Problem 12.24E

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.

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

1.

To prepare: Journal entry to record issuance of bonds payable at face value.

Answer 7

Chapter 12, Problem 12.24E

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.

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

1.

To prepare: Journal entry to record issuance of bonds payable at face value.

Answer 8

2.

To determine

To prepare: Journal entry to record issuance of bonds payable at discount.

Answer 9

2.

To determine

To prepare: Journal entry to record issuance of bonds payable at discount.

Answer 10

3.

To determine

To prepare: Journal entry to record issuance of bonds payable at premium.

Answer 11

3.

To determine

To prepare: Journal entry to record issuance of bonds payable at premium.

Answer 12

4.

To determine

To explain: The bond price which results the most interest expense.

Answer 13

4.

To determine

To explain: The bond price which results the most interest expense.

Answer 14

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Answer 15

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Answer 16

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Answer 17

Ch. 12 - Prob. 1QC Ch. 12 - Daniels's bonds payable carry a stated interest...Ch. 12 - A bond that matures in installments at regular...Ch. 12 - Prob. 4QC Ch. 12 - Nicholas Smith Fitness Gym has 700,000 of 20-year...Ch. 12 - Prob. 6QC Ch. 12 - Prob. 7QC Ch. 12 - The debt to equity ratio is calculated as a. Total...Ch. 12 - Mike Gordon wishes to have 80,000 in five years....Ch. 12 - Prob. 10QC

To prepare: Journal entry to record issuance of bonds payable at discount.

To prepare: Journal entry to record issuance of bonds payable at premium.

To explain: The bond price which results the most interest expense.

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