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 12.41BP

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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On January 1, 2020, Nexus Technologies purchased a machine for $15,000. The machine was estimated to have a 10-year useful life and a residual value of $800. Straight-line depreciation is used. On January 1, 2022, the machine was exchanged for office equipment with a fair value of $12,500. Assuming that the exchange had commercial substance, how much would be recorded as a gain on disposal of the machine on January 1, 2022? help

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Answer 2

Question

Chapter 12, Problem 12.41BP

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 12.41BP

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 12.41BP

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 12.41BP

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 12.41BP

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 12.41BP

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

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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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Chapter 12 Solutions