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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Richardson Industries has budgeted total factory overhead for the year at $710,000, divided into two departments: Cutting ($500,000) and Finishing ($210,000). Richardson manufactures two products: dining tables and chairs. Each dining table requires 4 direct labor hours in Cutting and 2 direct labor hours in Finishing. Each chair requires 3 direct labor hours in Cutting and 4 direct labor hours in Finishing. Each product is budgeted for 3,500 units of production for the year. Determine the total number of budgeted direct labor hours for the year in the Finishing Department.

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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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See solution

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

Expert Solution & Answer

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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Chapter 12 Solutions