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. Stated interest rate: It refers to the interest rate that is stated on the face of the bonds. Market interest rate: It refers to the interest rate that the lenders expect, or demands from the borrower to part with their money as loan to them. To identify: The issue price of bonds.

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Answer 1

Question

Chapter 12, Problem 12.34AP

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.

Stated interest rate: It refers to the interest rate that is stated on the face of the bonds.

Market interest rate: It refers to the interest rate that the lenders expect, or demands from the borrower to part with their money as loan to them.

To identify: The issue price of bonds.

2.

To determine

To identify: The issue price of bonds.

3.

a.

To determine

To prepare: Journal entry to record issuance of bonds payable on January 1, 2018.

b.

To determine

To prepare: Journal entry to record semiannual interest and amortization of discount on bonds.

c.

To determine

To prepare: Journal entry to record semiannual interest and amortization of discount on bonds.

d.

To determine

To prepare: Journal entry to record the retirement of bond payable at maturity.

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Florida Kitchens produces high-end cooking ranges. The costs to manufacture and market the ranges at the company’s volume of 3,000 units per quarter are shown in the following table: Unit manufacturing costs Variable costs $ 1,440 Fixed overhead 720 Total unit manufacturing costs $ 2,160 Unit nonmanufacturing costs Variable 360 Fixed 840 Total unit nonmanufacturing costs 1,200 Total unit costs $ 3,360 The company has the capacity to produce 3,000 units per quarter and always operates at full capacity. The ranges sell for $4,000 per unit. Required: a. Florida Kitchens receives a proposal from an outside contractor, Burns Electric, who will manufacture 1,200 of the 3,000 ranges per quarter and ship them directly to Florida’s customers as orders are received from the sales office at Florida. Florida would provide the materials for the ranges, but Burns would assemble, box, and ship the ranges. The variable manufacturing costs would be…

Answer 2

Question

Chapter 12, Problem 12.34AP

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.

Stated interest rate: It refers to the interest rate that is stated on the face of the bonds.

Market interest rate: It refers to the interest rate that the lenders expect, or demands from the borrower to part with their money as loan to them.

To identify: The issue price of bonds.

2.

To determine

To identify: The issue price of bonds.

3.

a.

To determine

To prepare: Journal entry to record issuance of bonds payable on January 1, 2018.

b.

To determine

To prepare: Journal entry to record semiannual interest and amortization of discount on bonds.

c.

To determine

To prepare: Journal entry to record semiannual interest and amortization of discount on bonds.

d.

To determine

To prepare: Journal entry to record the retirement of bond payable at maturity.

Expert Solution & Answer

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Answer 3

Question

Chapter 12, Problem 12.34AP

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.

Stated interest rate: It refers to the interest rate that is stated on the face of the bonds.

Market interest rate: It refers to the interest rate that the lenders expect, or demands from the borrower to part with their money as loan to them.

To identify: The issue price of bonds.

2.

To determine

To identify: The issue price of bonds.

3.

a.

To determine

To prepare: Journal entry to record issuance of bonds payable on January 1, 2018.

b.

To determine

To prepare: Journal entry to record semiannual interest and amortization of discount on bonds.

c.

To determine

To prepare: Journal entry to record semiannual interest and amortization of discount on bonds.

d.

To determine

To prepare: Journal entry to record the retirement of bond payable at maturity.

Expert Solution & Answer

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Answer 4

Question

Chapter 12, Problem 12.34AP

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.

Stated interest rate: It refers to the interest rate that is stated on the face of the bonds.

Market interest rate: It refers to the interest rate that the lenders expect, or demands from the borrower to part with their money as loan to them.

To identify: The issue price of bonds.

2.

To determine

To identify: The issue price of bonds.

3.

a.

To determine

To prepare: Journal entry to record issuance of bonds payable on January 1, 2018.

b.

To determine

To prepare: Journal entry to record semiannual interest and amortization of discount on bonds.

c.

To determine

To prepare: Journal entry to record semiannual interest and amortization of discount on bonds.

d.

To determine

To prepare: Journal entry to record the retirement of bond payable at maturity.

Expert Solution & Answer

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Answer 5

Chapter 12, Problem 12.34AP

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.

Stated interest rate: It refers to the interest rate that is stated on the face of the bonds.

Market interest rate: It refers to the interest rate that the lenders expect, or demands from the borrower to part with their money as loan to them.

To identify: The issue price of bonds.

2.

To determine

To identify: The issue price of bonds.

3.

a.

To determine

To prepare: Journal entry to record issuance of bonds payable on January 1, 2018.

b.

To determine

To prepare: Journal entry to record semiannual interest and amortization of discount on bonds.

c.

To determine

To prepare: Journal entry to record semiannual interest and amortization of discount on bonds.

d.

To determine

To prepare: Journal entry to record the retirement of bond payable at maturity.

Answer 6

Chapter 12, Problem 12.34AP

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.

Stated interest rate: It refers to the interest rate that is stated on the face of the bonds.

Market interest rate: It refers to the interest rate that the lenders expect, or demands from the borrower to part with their money as loan to them.

To identify: The issue price of bonds.

Answer 7

Chapter 12, Problem 12.34AP

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.

Stated interest rate: It refers to the interest rate that is stated on the face of the bonds.

Market interest rate: It refers to the interest rate that the lenders expect, or demands from the borrower to part with their money as loan to them.

To identify: The issue price of bonds.

Answer 8

2.

To determine

To identify: The issue price of bonds.

Answer 9

2.

To determine

To identify: The issue price of bonds.

Answer 10

3.

a.

To determine

To prepare: Journal entry to record issuance of bonds payable on January 1, 2018.

Answer 11

3.

a.

To determine

To prepare: Journal entry to record issuance of bonds payable on January 1, 2018.

Answer 12

b.

To determine

To prepare: Journal entry to record semiannual interest and amortization of discount on bonds.

Answer 13

b.

To determine

To prepare: Journal entry to record semiannual interest and amortization of discount on bonds.

Answer 14

c.

To determine

To prepare: Journal entry to record semiannual interest and amortization of discount on bonds.

Answer 15

c.

To determine

To prepare: Journal entry to record semiannual interest and amortization of discount on bonds.

Answer 16

d.

To determine

To prepare: Journal entry to record the retirement of bond payable at maturity.

Answer 17

d.

To determine

To prepare: Journal entry to record the retirement of bond payable at maturity.

Answer 18

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Answer 19

Expert Solution & Answer

Answer 20

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Answer 21

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To identify: The issue price of bonds.

To prepare: Journal entry to record issuance of bonds payable on January 1, 2018.

To prepare: Journal entry to record semiannual interest and amortization of discount on bonds.

To prepare: Journal entry to record semiannual interest and amortization of discount on bonds.

To prepare: Journal entry to record the retirement of bond payable at maturity.

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