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

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Answer 1

Question

Chapter 12, Problem 12.2BPE

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.

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

b)

To determine

To prepare: Journal entry to record the first interest payment on June 30.

c)

To determine

To prepare: Journal entry to record the payment of the principal on the maturity date.

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Can you explain the correct methodology to solve this general accounting problem?

On June 30, Caldwell Industries issued a $12,000, 7%, 9-month note to the Central Community Bank. The entry on Caldwell's books to record the payment of the note at maturity will include a credit to Cash for: a. $12,000. b. $12,630. c. $12,840. d. $12,210.

Please provide the correct answer to this general accounting problem using valid calculations.

Answer 2

Question

Chapter 12, Problem 12.2BPE

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.

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

b)

To determine

To prepare: Journal entry to record the first interest payment on June 30.

c)

To determine

To prepare: Journal entry to record the payment of the principal on the maturity date.

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Answer 3

Question

Chapter 12, Problem 12.2BPE

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.

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

b)

To determine

To prepare: Journal entry to record the first interest payment on June 30.

c)

To determine

To prepare: Journal entry to record the payment of the principal on the maturity date.

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Answer 4

Question

Chapter 12, Problem 12.2BPE

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.

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

b)

To determine

To prepare: Journal entry to record the first interest payment on June 30.

c)

To determine

To prepare: Journal entry to record the payment of the principal on the maturity date.

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Answer 5

Chapter 12, Problem 12.2BPE

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.

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

b)

To determine

To prepare: Journal entry to record the first interest payment on June 30.

c)

To determine

To prepare: Journal entry to record the payment of the principal on the maturity date.

Answer 6

Chapter 12, Problem 12.2BPE

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.

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

Answer 7

Chapter 12, Problem 12.2BPE

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.

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

Answer 8

b)

To determine

To prepare: Journal entry to record the first interest payment on June 30.

Answer 9

b)

To determine

To prepare: Journal entry to record the first interest payment on June 30.

Answer 10

c)

To determine

To prepare: Journal entry to record the payment of the principal on the maturity date.

Answer 11

c)

To determine

To prepare: Journal entry to record the payment of the principal on the maturity date.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 12 - Describe the two distinct obligations incurred by...Ch. 12 - Explain the meaning of each of the following terms...Ch. 12 - Prob. 3DQ Ch. 12 - A corporation issues 26,000,000 of 9% bonds to...Ch. 12 - Prob. 5DQ Ch. 12 - The following data relate to a 2,000,000, 8% bond...Ch. 12 - Prob. 7DQ Ch. 12 - Prob. 8DQ Ch. 12 - Fleeson Company needs additional funds to purchase...Ch. 12 - Prob. 10DQ

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.

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To prepare: Journal entry to record the first interest payment on June 30.

To prepare: Journal entry to record the payment of the principal on the maturity date.

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