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. Premium on bonds payable: It occurs when the bonds are issued at a high price than the face value. To prepare : Journal entry to record issuance of the bonds.

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Answer 1

Question

Chapter 12, Problem 12.7EX

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.

Premium on bonds payable: It occurs when the bonds are issued at a high price than the face value.

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

b.

To determine

To prepare: Journal entry to record first interest payment and amortization of premium on bonds.

c.

To determine

To explain: The reason why the company was able to issue the bonds for $13,023,576 rather than $12,000,000.

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Students have asked these similar questions

Determine the total manufacturing costs incurred during the financial year 2022

Nu Company reported the following pretax data for its first year of operations. Net sales 2,800 Cost of goods available for sale 2,500 Operating expenses 880 Effective tax rate 25% Ending inventories: If LIFO is elected 820 If FIFO is elected 1,060 What is Nu's net income if it elects LIFO?

Use the following data

Answer 2

Question

Chapter 12, Problem 12.7EX

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.

Premium on bonds payable: It occurs when the bonds are issued at a high price than the face value.

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

b.

To determine

To prepare: Journal entry to record first interest payment and amortization of premium on bonds.

c.

To determine

To explain: The reason why the company was able to issue the bonds for $13,023,576 rather than $12,000,000.

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Answer 3

Question

Chapter 12, Problem 12.7EX

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.

Premium on bonds payable: It occurs when the bonds are issued at a high price than the face value.

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

b.

To determine

To prepare: Journal entry to record first interest payment and amortization of premium on bonds.

c.

To determine

To explain: The reason why the company was able to issue the bonds for $13,023,576 rather than $12,000,000.

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Answer 4

Question

Chapter 12, Problem 12.7EX

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.

Premium on bonds payable: It occurs when the bonds are issued at a high price than the face value.

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

b.

To determine

To prepare: Journal entry to record first interest payment and amortization of premium on bonds.

c.

To determine

To explain: The reason why the company was able to issue the bonds for $13,023,576 rather than $12,000,000.

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Answer 5

Chapter 12, Problem 12.7EX

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.

Premium on bonds payable: It occurs when the bonds are issued at a high price than the face value.

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

b.

To determine

To prepare: Journal entry to record first interest payment and amortization of premium on bonds.

c.

To determine

To explain: The reason why the company was able to issue the bonds for $13,023,576 rather than $12,000,000.

Answer 6

Chapter 12, Problem 12.7EX

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.

Premium on bonds payable: It occurs when the bonds are issued at a high price than the face value.

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

Answer 7

Chapter 12, Problem 12.7EX

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.

Premium on bonds payable: It occurs when the bonds are issued at a high price than the face value.

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

Answer 8

b.

To determine

To prepare: Journal entry to record first interest payment and amortization of premium on bonds.

Answer 9

b.

To determine

To prepare: Journal entry to record first interest payment and amortization of premium on bonds.

Answer 10

c.

To determine

To explain: The reason why the company was able to issue the bonds for $13,023,576 rather than $12,000,000.

Answer 11

c.

To determine

To explain: The reason why the company was able to issue the bonds for $13,023,576 rather than $12,000,000.

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.

To prepare: Journal entry to record first interest payment and amortization of premium on bonds.

To explain: The reason why the company was able to issue the bonds for $13,023,576 rather than $12,000,000.

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Chapter 12 Solutions