Horngren's Financial & Managerial Accounting Plus Mylab Accounting With Pearson Etext -- Access Card Package (5th Edition) (miller-nobles Et Al., The Horngren Accounting Series)

5th Edition

ISBN: 9780134077345

Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura

Publisher: PEARSON

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Chapter 12, Problem 12.40BP

Analyzing and journalizing bond transactions

On January 1, 2016, Texas Credit Union (TCU) issued 6%, 20-year bonds payable with Face value of $600,000. The bonds pay interest on June 30 and December 31.

Requirements

1. If the market interest rate is 5% when TCU issues its bonds, will the bonds be priced at Face value, at a premium, or at a discount? Explain.

2. If the market interest rate is 9% when TCU issues its bonds, will the bonds be priced at Face value, at a premium, or at a discount? Explain.

3. The issue price of the bonds is 96. Journalize the following bond transactions:

a. Issuance of the bonds on January 1, 2016.

b. Payment of interest and amortization on June 30, 2016.

c. Payment of interest and amortization on December 31, 2016.

d. Retirement of the bond at maturity on December 31, 2035.

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Chapter 12, Problem 12.39BP

Chapter 12, Problem 12.41BP

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Tracy Company, a manufacturer of air conditioners, sold 100 units to Thomas Company on November 17, 2024. The units have a list price of $750 each, but Thomas was given a 20% trade discount. The terms of the sale were 3/10 , n/30 . 3-a. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on November 26, 2024, assuming that the net method of accounting for cash discounts is used. 3-b. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on December 15, 2024, assuming that the net method of accounting for cash discounts is used.

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Chapter 12 Solutions

Horngren's Financial & Managerial Accounting Plus Mylab Accounting With Pearson Etext -- Access Card Package (5th Edition) (miller-nobles Et Al., The Horngren Accounting Series)

Ch. 12 - Flipco signed a 10-year note payable on January 1,...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. 10BQC

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