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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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