Horngren's Accounting (12th Edition)
12th Edition
ISBN: 9780134486444
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 14, Problem 10BQC
10B Hicks Corporation issued S500.000 of 5%, 10-year bonds payable at a price of 92. The market interest rate at the date of issuance was 6%, and the bonds pay interest semiannually. The
Learning Objective 8 Appendix 14B
| Date | Accounts and Explanation | Debit | Credit |
| a. | Interest ExpenseDiscount on Bonds PayableCash | 14,500 | 2,00012,500 |
| b. | Interest ExpenseDiscount on Bonds PayableCash | 13,800 | 1,30012,500 |
| c. | Interest ExpenseDiscount on Bonds PayableCash | 17,000 | 2,00015,000 |
| d. | Interest ExpenseDiscount on Bonds PayableCash | 16,300 | 1,30015,000 |
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Brief Exercise 10-08
Metlock, Inc. issues $264,000, 10-year, 10% bonds at 99. Prepare the journal entry to record the sale of these bonds on March 1, 2022. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Account Titles and Explanation
Debit
Credit
Enter an account title
enter a debit amount
enter a credit amount
Enter an account title
enter a debit amount
enter a credit amount
Enter an account title
enter a debit amount
enter a credit amount
Brief Exercise 10-09
Oriole Company issues $325,000, 20-year, 7% bonds at 103. Prepare the journal entry to record the sale of these bonds on June 1, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Account Titles and Explanation
Debit
Credit
Enter an account title
enter a debit amount
enter a credit amount
Enter an account title
enter a debit amount
enter a credit amount
Enter an account title
enter a debit amount
enter a credit amount
I need B
Chapter 14 Solutions
Horngren's Accounting (12th Edition)
Ch. 14 - Prob. 1QCCh. 14 - Daniels's bonds payable carry a stated interest...Ch. 14 - Prob. 3QCCh. 14 - Prob. 4QCCh. 14 - Prob. 5QCCh. 14 - Prob. 6QCCh. 14 - Prob. 7QCCh. 14 - Prob. 8QCCh. 14 - Prob. 9AQCCh. 14 - 10B Hicks Corporation issued S500.000 of 5%,...
Ch. 14 - Prob. 1RQCh. 14 - Prob. 2RQCh. 14 - Prob. 3RQCh. 14 - Prob. 4RQCh. 14 - Prob. 5RQCh. 14 - Prob. 6RQCh. 14 - Prob. 7RQCh. 14 - Prob. 8RQCh. 14 - Prob. 9RQCh. 14 - Prob. 10RQCh. 14 - Prob. 11RQCh. 14 - Prob. 12RQCh. 14 - 13. What type of account is Premium on Bonds...Ch. 14 - Prob. 14RQCh. 14 - Prob. 15RQCh. 14 - Prob. 16RQCh. 14 - What does the debt to equity ratio show, and how...Ch. 14 - Prob. 18ARQCh. 14 - Prob. 19ARQCh. 14 - Prob. 20ARQCh. 14 - Prob. 21BRQCh. 14 - Accounting fora long-term note payable Learning...Ch. 14 - Prob. S14.2SECh. 14 - Prob. S14.3SECh. 14 - Prob. S14.4SECh. 14 - Determining bond amounts Learning Objective 3...Ch. 14 - Journalizing bond transactions Learning Objective...Ch. 14 - Journalizing bond transactions Learning Objective...Ch. 14 - Prob. S14.8SECh. 14 - Prob. S14.9SECh. 14 - Prob. S14.10SECh. 14 - Prob. S14.11SECh. 14 - Prob. S14.12SECh. 14 - Prob. S14A.13SECh. 14 - Prob. S14A.14SECh. 14 - Prob. S14A.15SECh. 14 - Prob. S14B.16SECh. 14 - Prob. S14B.17SECh. 14 - Accounting for long-term notes payable...Ch. 14 - Prob. E14.19ECh. 14 - Prob. E14.20ECh. 14 - Determining bond prices and interest expense...Ch. 14 - Journalizing bond issuance and interest payments...Ch. 14 - Journalizing bond issuance and interest payments...Ch. 14 - Journalizing bond transactions Learning Objective...Ch. 14 - Journalizing bond issuance and interest payments...Ch. 14 - Retiring bonds payable before maturity Learning...Ch. 14 - Prob. E14.27ECh. 14 - Prob. E14.28ECh. 14 - Prob. E14.29ECh. 14 - Prob. E14A.30ECh. 14 - Prob. E14B.31ECh. 14 - Prob. P14.32APGACh. 14 - Analyzing, journalizing, and reporting bond...Ch. 14 - Analyzing and journalizing bond transactions...Ch. 14 - Prob. P14.35APGACh. 14 - Prob. P14.36APGACh. 14 - Prob. P14AB.37APGACh. 14 - Prob. P14AB.38APGACh. 14 - Journalizing liability transactions and reporting...Ch. 14 - Analyzing, journalizing, and reporting bond...Ch. 14 - Prob. P14.41BPGBCh. 14 - Analyzing and journalizing bond transactions...Ch. 14 - Prob. P14.43BPGBCh. 14 - Prob. P14AB.44BPGBCh. 14 - Prob. P14AB.45BPGBCh. 14 - Prob. P14.46CTCh. 14 - Prob. P14.47CPCh. 14 - Prob. 1CPCh. 14 - Prob. 2CPCh. 14 - Prob. 3CPCh. 14 - Prob. 4CPCh. 14 - Prob. 5CPCh. 14 - Prob. 6CPCh. 14 - Prob. 7CPCh. 14 - Prob. 8CPCh. 14 - Prob. 14.1TIATCCh. 14 - Decision Case 14-1 The following questions are not...Ch. 14 - Ethical Issue 14-1 Raffle's Kids, a nonprofit...Ch. 14 - Prob. 14.1FCCh. 14 - Prob. 14.1FSC
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Wilbury Corporation issued 1 million of 13.5% bonds for 985,071.68. The bonds are dated and issued October 1, 2019, are due September 30, 2020, and pay interest semiannually on March 31 and September 30. Assume an effective yield rate of 14%. Required: 1. Prepare a bond interest expense and discount amortization schedule using the straight-line method. 2. Prepare a bond interest expense and discount amortization schedule using the effective interest method. 3. Prepare adjusting entries for the end of the fiscal year December 31, 2019, using the: a. straight-line method of amortization b. effective interest method of amortization 4. If income before interest and income taxes of 30% in 2020 is 500,000, compute net income under each alternative. 5. Assume the company retired the bonds on June 30, 2020, at 98 plus accrued interest. Prepare the journal entries to record the bond retirement using the: a. straight line method of amortization b. effective interest method of amortization 6. Compute the companys times interest earned (pretax operating income divided by interest expense) for 2020 under each alternative.arrow_forwardWildhorse Co. sold $3,310,000, 9%, 10-year bonds on January 1, 2025. The bonds were dated January 1, 2025, and pay interest on January 1. The company uses straight-line amortization on bond premiums and discounts. Financial statements are prepared annually. (a) Your Answer Correct Answer Your answer is correct. Prepare the journal entries to record the issuance of the bonds.assuming they sold at: (1) 104 and (2) 97. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) No. Date Account Titles and Explanation 1. 1/1/25 Cash Bonds Payable Premium on Bonds Payable Debit 3442400 Credit 3310000 132400arrow_forwardProblem 4 - Bonds Payable Question Information: REQ A Bond Face Stated Effective Life PAR/PREMIUM/DISCOUNT Issuance Value Interest Interest Rate Rate A $ 100,000 6% 6% 10 years B $ 400,000 8% 6% 10 years C $ 600,000 6% 8% 5 years Insert Computations or Amortization Data analytics or Excel Data tools here: REQ B Compute the proceeds of each bond issuance A B C REQ C For Each, indicate whether the balance sheet value of the bond liability will increase, decrease or remain constant over the life of the bond A B C REQ D For Eaqch bond issuance indicate whether the interest expense recognized each period will increase decrease or remain constant over the life of the bond A B Carrow_forward
- Subject: acountingarrow_forward2.cengagenow.com/ilm/takeAssignment/takeAssignmentMain.do?invoker3D&takeAssignmentSessionLocator=&inprogress3false eBook Show Me How Calculator Print Item Entries for Issuing Bonds and Amortizing Discount by Straight-Line Method On the first day of its fiscal year, Chin Company issued $18,200,000 of five-year, 9% bonds to finance its operations of producing and selling home improvement products. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 11%, resulting in Chin receiving cash of $16,828,145. a. Journalize the entries to record the following: 1. Issuance of the bonds. 2. First semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.) 3. Second semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.) If an amount box does not require an entry, leave it blank. Round your…arrow_forwardPreparing a Bond Amortization Schedule answer 7-9 pleasearrow_forward
- 4. MC.11.162 A company issued $1,000,000 of 30-year, 8% callable bonds on April 1, with interest payable on April 1 and October 1. The fiscal year of the company is the calendar year. What is the journal entry needed when the bonds are issued at face value? O a. debit Cash and Discount on Bonds Payable, credit Bonds Payable O b. debit Cash, credit Bonds Payable O c. debit Bonds Payable, credit Cash O d. debit Cash, credit Premium on Bonds Payable and Bonds Payable 5. MC.11.163 A company issued $1,000,000 of 30-year, 8% callable bonds on April 1, with interest payable on April 1 and October 1. The fiscal year of the company is the calendar year. The bonds are called at the end of year 3 for 104. What is the entry to record the redemption? (Assume the interest payment has been recorded separately.) O a. Bonds Payable 1,000,000 Gain on Redemption of Bonds 40,000 Cash 1,040,000 O b. Bonds Payable 1,000,000 Loss on Redemption of Bonds 40,000 Cash 1,040,000 O c. Bonds Payable 1,040,000 Cash…arrow_forwardI could use some help with this question thanksarrow_forward7barrow_forward
- v2.cengagenow.com 403114 Discount Amortization On the first day of the fiscal year, a company issues a $1,100,000, 7%, 7-year bond that pays semiannual interest of $38,500 ($1,100,000 x 7% x 1/2), receiving cash of $1,041,903. Journalize the first interest payment and the amortization of the related bond discount. Round to the nearest dollar. If an amount box does not require an entry, leave it blank.arrow_forwardNeed question with questions 18.19,20arrow_forwardPreparing a Bond Amortization Schedule answer 1-3arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
College Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,
Financial & Managerial AccountingAccountingISBN:9781285866307Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning
Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning
College Accounting, Chapters 1-27
Accounting
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:Cengage Learning,
Financial & Managerial Accounting
Accounting
ISBN:9781285866307
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning
Financial Accounting - Long-term Liabilities - Bonds; Author: Finance & Accounting Videos by Prof Coram;https://www.youtube.com/watch?v=_1fwsJIGMos;License: Standard Youtube License