Bonds Bonds are a kind of interest bearing notes payable, usually issued by companies, universities and governmental organizations. It is a debt instrument used for the purpose of raising fund of the corporations or governmental agencies. Notes payable Notes Payable is a written promise to pay a certain amount on a future date, with certain percentage of interest. Companies use to issue notes payable to meet short-term financing needs. To Prepare: The journal entry to record the sale of both issues to underwriters, assume there is no accrued interest and no issue costs for shares.

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Answer 1

Question

Chapter 14, Problem 14.14E

(1)

To determine

Bonds

Bonds are a kind of interest bearing notes payable, usually issued by companies, universities and governmental organizations. It is a debt instrument used for the purpose of raising fund of the corporations or governmental agencies.

Notes payable

Notes Payable is a written promise to pay a certain amount on a future date, with certain percentage of interest. Companies use to issue notes payable to meet short-term financing needs.

To Prepare: The journal entry to record the sale of both issues to underwriters, assume there is no accrued interest and no issue costs for shares.

(2)

To determine

To Prepare: The journal entry to record the first semiannual interest payment for both the issue.

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Question 6 White & Decker Corporation’s 2024 financial statements included the following information in the long-term debt disclosure note: ($ in millions) 2024 Zero-coupon subordinated debentures, due 2039: $360 The disclosure note stated the debenture bonds were issued late in 2019 and have a maturity value of $530 million. The maturity value indicates the amount that White & Decker will pay bondholders in 2039. Each individual bond has a maturity value (face amount) of $1,030. Zero-coupon bonds pay no cash interest during the term to maturity. The company is “accreting” (gradually increasing) the issue price to maturity value using the bonds' effective interest rate computed on an annual basis.…

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Answer 2

Question

Chapter 14, Problem 14.14E

(1)

To determine

Bonds

Bonds are a kind of interest bearing notes payable, usually issued by companies, universities and governmental organizations. It is a debt instrument used for the purpose of raising fund of the corporations or governmental agencies.

Notes payable

Notes Payable is a written promise to pay a certain amount on a future date, with certain percentage of interest. Companies use to issue notes payable to meet short-term financing needs.

To Prepare: The journal entry to record the sale of both issues to underwriters, assume there is no accrued interest and no issue costs for shares.

(2)

To determine

To Prepare: The journal entry to record the first semiannual interest payment for both the issue.

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Answer 3

Question

Chapter 14, Problem 14.14E

(1)

To determine

Bonds

Bonds are a kind of interest bearing notes payable, usually issued by companies, universities and governmental organizations. It is a debt instrument used for the purpose of raising fund of the corporations or governmental agencies.

Notes payable

Notes Payable is a written promise to pay a certain amount on a future date, with certain percentage of interest. Companies use to issue notes payable to meet short-term financing needs.

To Prepare: The journal entry to record the sale of both issues to underwriters, assume there is no accrued interest and no issue costs for shares.

(2)

To determine

To Prepare: The journal entry to record the first semiannual interest payment for both the issue.

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Answer 4

Question

Chapter 14, Problem 14.14E

(1)

To determine

Bonds

Bonds are a kind of interest bearing notes payable, usually issued by companies, universities and governmental organizations. It is a debt instrument used for the purpose of raising fund of the corporations or governmental agencies.

Notes payable

Notes Payable is a written promise to pay a certain amount on a future date, with certain percentage of interest. Companies use to issue notes payable to meet short-term financing needs.

To Prepare: The journal entry to record the sale of both issues to underwriters, assume there is no accrued interest and no issue costs for shares.

(2)

To determine

To Prepare: The journal entry to record the first semiannual interest payment for both the issue.

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Answer 5

Chapter 14, Problem 14.14E

(1)

To determine

Bonds

Bonds are a kind of interest bearing notes payable, usually issued by companies, universities and governmental organizations. It is a debt instrument used for the purpose of raising fund of the corporations or governmental agencies.

Notes payable

Notes Payable is a written promise to pay a certain amount on a future date, with certain percentage of interest. Companies use to issue notes payable to meet short-term financing needs.

To Prepare: The journal entry to record the sale of both issues to underwriters, assume there is no accrued interest and no issue costs for shares.

(2)

To determine

To Prepare: The journal entry to record the first semiannual interest payment for both the issue.

Answer 6

Chapter 14, Problem 14.14E

(1)

To determine

Bonds

Bonds are a kind of interest bearing notes payable, usually issued by companies, universities and governmental organizations. It is a debt instrument used for the purpose of raising fund of the corporations or governmental agencies.

Notes payable

Notes Payable is a written promise to pay a certain amount on a future date, with certain percentage of interest. Companies use to issue notes payable to meet short-term financing needs.

To Prepare: The journal entry to record the sale of both issues to underwriters, assume there is no accrued interest and no issue costs for shares.

Answer 7

Chapter 14, Problem 14.14E

(1)

To determine

Bonds

Bonds are a kind of interest bearing notes payable, usually issued by companies, universities and governmental organizations. It is a debt instrument used for the purpose of raising fund of the corporations or governmental agencies.

Notes payable

Notes Payable is a written promise to pay a certain amount on a future date, with certain percentage of interest. Companies use to issue notes payable to meet short-term financing needs.

To Prepare: The journal entry to record the sale of both issues to underwriters, assume there is no accrued interest and no issue costs for shares.

Answer 8

(2)

To determine

To Prepare: The journal entry to record the first semiannual interest payment for both the issue.

Answer 9

(2)

To determine

To Prepare: The journal entry to record the first semiannual interest payment for both the issue.

Answer 10

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Answer 11

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Answer 12

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Answer 13

Ch. 14 - How is periodic interest determined for...Ch. 14 - As a general rule, how should long-term...Ch. 14 - How are bonds and notes the same? How do they...Ch. 14 - What information is contained in a bond indenture?...Ch. 14 - On January 1, 2018, Brandon Electronics issued 85...Ch. 14 - How is the price determined for a bond (or bond...Ch. 14 - A zero-coupon bond pays no interest. Explain.Ch. 14 - Prob. 14.8Q Ch. 14 - Compare the two commonly used methods of...Ch. 14 - Prob. 14.10Q

Solution Summary: The author explains that bonds are a kind of interest bearing notes payable, usually issued by companies, universities, and governmental organizations.

To Prepare: The journal entry to record the first semiannual interest payment for both the issue.

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Chapter 14 Solutions