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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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

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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