a.
Concept Introduction:
Bond Issue Cost: Bond issue costs are the costs that the company incurs at the time of issuing shares. It should be added to the discount or premium derived on the bond issue and should be amortized over the life span of the bond and the cost of issuance should be reduced from the cash received.
The issue price of the bond.
b.
Concept Introduction:
Amortization: Amortization refers to the method of accounting which lower the booking amount or book value of any loan or any intangible asset over the time period.
To prepare: The amortization table for the bond issue.
c.
Concept Introduction:
Journalizing: In accounts, for keeping records of all the business transactions properly, journalizing is being done for the transactions. Thus, it helps to track the transactions in chronological order as well as to maintain the records too.
To prepare: The journal for recording the required entries on the date of issue.
d.
Concept Introduction:
Journalizing: In accounts, for keeping records of all the business transactions properly, journalizing is being done for the transactions. Thus, it helps to track the transactions in chronological order as well as to maintain the records too.
To prepare: The journal for recording the first interest payment.
e.
Concept Introduction:
Journalizing: In accounts, for keeping records of all the business transactions properly, journalizing is being done for the transactions. Thus, it helps to track the transactions in chronological order as well as to maintain the records too.
To prepare: The journal for recording conversion of the bond at the end of the third year as on January 1, 2025.

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Chapter 14 Solutions
Intermediate Accounting
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