The issue price of the bond. Given information: Company issued bonds worth $850,000. Term period for conversion is 6 years Interest is payable semi-annually each January 1 and July 1. Market rate of interest is 10%. Effective rate of interest is 8%.

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Answer 1

Question

Chapter 14, Problem 14.13E

a.

To determine

The issue price of the bond.

Given information:

Company issued bonds worth $850,000.

Term period for conversion is 6 years

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

Market rate of interest is 10%.

Effective rate of interest is 8%.

b.

To determine

To prepare: The amortization table for the bond issue.

c.

To determine

To prepare: The journal for recording the required entries on the date of issue.

d.

To determine

To prepare: The journal for recording first interest payment.

e.

To determine

To prepare: The journal for recording conversion of bond at the end of third year as on January 1, 2021.

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Bell Inc. took a physical inventory at the end of the year and determined that $840,000 of goods were on hand. In addition, Bell, Inc. determined that $60,000 of goods that were in transit and were shipped f.o.b. shipping point were actually received two days after the inventory count and that the company had $95,000 of goods out on consignment. What amount should Bell report as inventory at the end of the year?

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Answer 2

Question

Chapter 14, Problem 14.13E

a.

To determine

The issue price of the bond.

Given information:

Company issued bonds worth $850,000.

Term period for conversion is 6 years

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

Market rate of interest is 10%.

Effective rate of interest is 8%.

b.

To determine

To prepare: The amortization table for the bond issue.

c.

To determine

To prepare: The journal for recording the required entries on the date of issue.

d.

To determine

To prepare: The journal for recording first interest payment.

e.

To determine

To prepare: The journal for recording conversion of bond at the end of third year as on January 1, 2021.

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Answer 3

Question

Chapter 14, Problem 14.13E

a.

To determine

The issue price of the bond.

Given information:

Company issued bonds worth $850,000.

Term period for conversion is 6 years

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

Market rate of interest is 10%.

Effective rate of interest is 8%.

b.

To determine

To prepare: The amortization table for the bond issue.

c.

To determine

To prepare: The journal for recording the required entries on the date of issue.

d.

To determine

To prepare: The journal for recording first interest payment.

e.

To determine

To prepare: The journal for recording conversion of bond at the end of third year as on January 1, 2021.

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Answer 4

Question

Chapter 14, Problem 14.13E

a.

To determine

The issue price of the bond.

Given information:

Company issued bonds worth $850,000.

Term period for conversion is 6 years

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

Market rate of interest is 10%.

Effective rate of interest is 8%.

b.

To determine

To prepare: The amortization table for the bond issue.

c.

To determine

To prepare: The journal for recording the required entries on the date of issue.

d.

To determine

To prepare: The journal for recording first interest payment.

e.

To determine

To prepare: The journal for recording conversion of bond at the end of third year as on January 1, 2021.

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Answer 5

Chapter 14, Problem 14.13E

a.

To determine

The issue price of the bond.

Given information:

Company issued bonds worth $850,000.

Term period for conversion is 6 years

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

Market rate of interest is 10%.

Effective rate of interest is 8%.

b.

To determine

To prepare: The amortization table for the bond issue.

c.

To determine

To prepare: The journal for recording the required entries on the date of issue.

d.

To determine

To prepare: The journal for recording first interest payment.

e.

To determine

To prepare: The journal for recording conversion of bond at the end of third year as on January 1, 2021.

Answer 6

Chapter 14, Problem 14.13E

a.

To determine

The issue price of the bond.

Given information:

Company issued bonds worth $850,000.

Term period for conversion is 6 years

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

Market rate of interest is 10%.

Effective rate of interest is 8%.

Answer 7

Chapter 14, Problem 14.13E

a.

To determine

The issue price of the bond.

Given information:

Company issued bonds worth $850,000.

Term period for conversion is 6 years

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

Market rate of interest is 10%.

Effective rate of interest is 8%.

Answer 8

b.

To determine

To prepare: The amortization table for the bond issue.

Answer 9

b.

To determine

To prepare: The amortization table for the bond issue.

Answer 10

c.

To determine

To prepare: The journal for recording the required entries on the date of issue.

Answer 11

c.

To determine

To prepare: The journal for recording the required entries on the date of issue.

Answer 12

d.

To determine

To prepare: The journal for recording first interest payment.

Answer 13

d.

To determine

To prepare: The journal for recording first interest payment.

Answer 14

e.

To determine

To prepare: The journal for recording conversion of bond at the end of third year as on January 1, 2021.

Answer 15

e.

To determine

To prepare: The journal for recording conversion of bond at the end of third year as on January 1, 2021.

Answer 16

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Answer 17

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Answer 18

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Answer 19

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The issue price of the bond. Given information: Company issued bonds worth $850,000. Term period for conversion is 6 years Interest is payable semi-annually each January 1 and July 1. Market rate of interest is 10%. Effective rate of interest is 8%.

The issue price of the bond. Given information: Company issued bonds worth $850,000. Term period for conversion is 6 years Interest is payable semi-annually each January 1 and July 1. Market rate of interest is 10%. Effective rate of interest is 8%.

To prepare: The amortization table for the bond issue.

To prepare: The journal for recording the required entries on the date of issue.

To prepare: The journal for recording first interest payment.

To prepare: The journal for recording conversion of bond at the end of third year as on January 1, 2021.

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Chapter 14 Solutions

The issue price of the bond.

Given information:

Company issued bonds worth $850,000.

Term period for conversion is 6 years

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

Market rate of interest is 10%.

Effective rate of interest is 8%.