The carrying value of the bond at the time of retirement. Given information: Company issued bonds worth $4,500,000. Term period for conversion is 5 years Interest is payable semi-annually each January 1 and July 1. Market rate of interest is 10%. Bonds retired at the value of $4,000,000.

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Answer 1

Question

Chapter 14, Problem 14.12E

a.

To determine

The carrying value of the bond at the time of retirement.

Given information:

Company issued bonds worth $4,500,000.

Term period for conversion is 5 years

Interest is payable semi-annually each January 1 and July 1.

Market rate of interest is 10%.

Bonds retired at the value of $4,000,000.

b.

To determine

To prepare: The journal for recording early retirement of bond at the end of the third year.

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Saved Required information [The following information applies to the questions displayed below.] On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $84,310 in assets to launch the business. On December 31, the company's records show the following items and amounts. $ 10,200 Cash withdrawals by owner Cash Accounts receivable 15,200 Consulting revenue Office supplies 3,550 Rent expense Land 45,990 Office equipment 18,310 Accounts payable 8,740 Salaries expense Telephone expense Miscellaneous expenses Owner investments 84,310 $ 2,340 15,200 3,910 7,350 790 610 Use the above information to prepare a December 31 balance sheet for Ernst Consulting. AC Graw Hill ERNST CONSULTING Balance Sheet December 31 $ 0 G-SYNC $ 0 S 0 B

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Answer 2

Question

Chapter 14, Problem 14.12E

a.

To determine

The carrying value of the bond at the time of retirement.

Given information:

Company issued bonds worth $4,500,000.

Term period for conversion is 5 years

Interest is payable semi-annually each January 1 and July 1.

Market rate of interest is 10%.

Bonds retired at the value of $4,000,000.

b.

To determine

To prepare: The journal for recording early retirement of bond at the end of the third year.

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Answer 3

Question

Chapter 14, Problem 14.12E

a.

To determine

The carrying value of the bond at the time of retirement.

Given information:

Company issued bonds worth $4,500,000.

Term period for conversion is 5 years

Interest is payable semi-annually each January 1 and July 1.

Market rate of interest is 10%.

Bonds retired at the value of $4,000,000.

b.

To determine

To prepare: The journal for recording early retirement of bond at the end of the third year.

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Answer 4

Question

Chapter 14, Problem 14.12E

a.

To determine

The carrying value of the bond at the time of retirement.

Given information:

Company issued bonds worth $4,500,000.

Term period for conversion is 5 years

Interest is payable semi-annually each January 1 and July 1.

Market rate of interest is 10%.

Bonds retired at the value of $4,000,000.

b.

To determine

To prepare: The journal for recording early retirement of bond at the end of the third year.

Expert Solution & Answer

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Answer 5

Chapter 14, Problem 14.12E

a.

To determine

The carrying value of the bond at the time of retirement.

Given information:

Company issued bonds worth $4,500,000.

Term period for conversion is 5 years

Interest is payable semi-annually each January 1 and July 1.

Market rate of interest is 10%.

Bonds retired at the value of $4,000,000.

b.

To determine

To prepare: The journal for recording early retirement of bond at the end of the third year.

Answer 6

Chapter 14, Problem 14.12E

a.

To determine

The carrying value of the bond at the time of retirement.

Given information:

Company issued bonds worth $4,500,000.

Term period for conversion is 5 years

Interest is payable semi-annually each January 1 and July 1.

Market rate of interest is 10%.

Bonds retired at the value of $4,000,000.

Answer 7

Chapter 14, Problem 14.12E

a.

To determine

The carrying value of the bond at the time of retirement.

Given information:

Company issued bonds worth $4,500,000.

Term period for conversion is 5 years

Interest is payable semi-annually each January 1 and July 1.

Market rate of interest is 10%.

Bonds retired at the value of $4,000,000.

Answer 8

b.

To determine

To prepare: The journal for recording early retirement of bond at the end of the third year.

Answer 9

b.

To determine

To prepare: The journal for recording early retirement of bond at the end of the third year.

Answer 10

Expert Solution & Answer

Answer 11

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Answer 12

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Answer 13

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The carrying value of the bond at the time of retirement. Given information: Company issued bonds worth $4,500,000. Term period for conversion is 5 years Interest is payable semi-annually each January 1 and July 1. Market rate of interest is 10%. Bonds retired at the value of $4,000,000.

Solution Summary: The author calculates the carrying value of the bond at the time of retirement by multiplying the historical market rate of interest by the beginning balance of debt.

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The carrying value of the bond at the time of retirement.

Given information:

Company issued bonds worth $4,500,000.

Term period for conversion is 5 years

Interest is payable semi-annually each January 1 and July 1.

Market rate of interest is 10%.

Bonds retired at the value of $4,000,000.

To prepare: The journal for recording early retirement of bond at the end of the third year.

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Chapter 14 Solutions