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. If selling price of the bond is equal to its face value, it is called as par on bond. If selling price of the bond is lesser than the face value, it is known as discount on bond. If selling price of the bond is greater than the face value, it is known as premium on bond. International Financial Reporting Standards They are commonly known as IFRS. These are set of accounting standards which are developed by independent (Non-profit) organization called as International Accounting Standards Board (IASB). These are universally accepted set of standards which state the rules and procedures for accounting at global level. Generally Accepted Accounting Principles They are commonly known as GAAP. It is a collection of generally practiced and followed rules and standards of accounting. GAAP provides global guidelines for preparation and disclosure of financial statements of public companies. It is created and developed by International Accounting Standards Board (IASB). To Prepare: The journal entry to record the issuance of the bonds under International Financial Reporting Standards (IFRS).

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Answer 1

Question

Chapter 14, Problem 14.17P

(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. If selling price of the bond is equal to its face value, it is called as par on bond. If selling price of the bond is lesser than the face value, it is known as discount on bond. If selling price of the bond is greater than the face value, it is known as premium on bond.

International Financial Reporting Standards

They are commonly known as IFRS. These are set of accounting standards which are developed by independent (Non-profit) organization called as International Accounting Standards Board (IASB). These are universally accepted set of standards which state the rules and procedures for accounting at global level.

Generally Accepted Accounting Principles

They are commonly known as GAAP. It is a collection of generally practiced and followed rules and standards of accounting. GAAP provides global guidelines for preparation and disclosure of financial statements of public companies. It is created and developed by International Accounting Standards Board (IASB).

To Prepare: The journal entry to record the issuance of the bonds under International Financial Reporting Standards (IFRS).

(2)

To determine

To Prepare: The journal entry to record payment of interest on December 31, 2016 under IFRS.

(3)

To determine

To Prepare: The journal entry to record payment of interest on June 30, 2019 under IFRS.

(4)

To determine

To prepare: The journal entry to record the call of the bonds under IFRS.

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Consolidation Working Paper One Year after Acquisition, Bargain Purchase On January 1, 2022, Paxon Corporation acquired 90 percent of the outstanding common stock of Saxon Company for $1.8 billion cash. The fair value of the 10 percent noncontrolling interest in Saxon was estimated to be $150 million at the date of acquisition. Paxon uses the complete equity method to report its investment. The trial balances of Paxon and Saxon (in millions) Cash and receivables Inventory Equity method investments Investment in Saxon Dr(Cr) Paxon Saxon $3,225 $855 2,260 530 December 31, 2022, appear below: 2,441.5 Land 650 300 Buildings and equipment, net 3,600 1,150 Current liabilities (2,020) (1,200) Long-term debt (5,000) (450) (500) (50) Common stock, par value Additional paid-in capital Retained earnings, January 1 Dividends Sales revenue (1,200) (200) (2,410) (600) 500 250 (30,000) (12,000) Equity in net income of Saxon (616.5) Gain on acquisition (250) Gain on sale of securities (150) Cost of…

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Accounting Question

Answer 2

Question

Chapter 14, Problem 14.17P

(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. If selling price of the bond is equal to its face value, it is called as par on bond. If selling price of the bond is lesser than the face value, it is known as discount on bond. If selling price of the bond is greater than the face value, it is known as premium on bond.

International Financial Reporting Standards

They are commonly known as IFRS. These are set of accounting standards which are developed by independent (Non-profit) organization called as International Accounting Standards Board (IASB). These are universally accepted set of standards which state the rules and procedures for accounting at global level.

Generally Accepted Accounting Principles

They are commonly known as GAAP. It is a collection of generally practiced and followed rules and standards of accounting. GAAP provides global guidelines for preparation and disclosure of financial statements of public companies. It is created and developed by International Accounting Standards Board (IASB).

To Prepare: The journal entry to record the issuance of the bonds under International Financial Reporting Standards (IFRS).

(2)

To determine

To Prepare: The journal entry to record payment of interest on December 31, 2016 under IFRS.

(3)

To determine

To Prepare: The journal entry to record payment of interest on June 30, 2019 under IFRS.

(4)

To determine

To prepare: The journal entry to record the call of the bonds under IFRS.

Expert Solution & Answer

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See solution

Answer 3

Question

Chapter 14, Problem 14.17P

(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. If selling price of the bond is equal to its face value, it is called as par on bond. If selling price of the bond is lesser than the face value, it is known as discount on bond. If selling price of the bond is greater than the face value, it is known as premium on bond.

International Financial Reporting Standards

They are commonly known as IFRS. These are set of accounting standards which are developed by independent (Non-profit) organization called as International Accounting Standards Board (IASB). These are universally accepted set of standards which state the rules and procedures for accounting at global level.

Generally Accepted Accounting Principles

They are commonly known as GAAP. It is a collection of generally practiced and followed rules and standards of accounting. GAAP provides global guidelines for preparation and disclosure of financial statements of public companies. It is created and developed by International Accounting Standards Board (IASB).

To Prepare: The journal entry to record the issuance of the bonds under International Financial Reporting Standards (IFRS).

(2)

To determine

To Prepare: The journal entry to record payment of interest on December 31, 2016 under IFRS.

(3)

To determine

To Prepare: The journal entry to record payment of interest on June 30, 2019 under IFRS.

(4)

To determine

To prepare: The journal entry to record the call of the bonds under IFRS.

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Answer 4

Question

Chapter 14, Problem 14.17P

(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. If selling price of the bond is equal to its face value, it is called as par on bond. If selling price of the bond is lesser than the face value, it is known as discount on bond. If selling price of the bond is greater than the face value, it is known as premium on bond.

International Financial Reporting Standards

They are commonly known as IFRS. These are set of accounting standards which are developed by independent (Non-profit) organization called as International Accounting Standards Board (IASB). These are universally accepted set of standards which state the rules and procedures for accounting at global level.

Generally Accepted Accounting Principles

They are commonly known as GAAP. It is a collection of generally practiced and followed rules and standards of accounting. GAAP provides global guidelines for preparation and disclosure of financial statements of public companies. It is created and developed by International Accounting Standards Board (IASB).

To Prepare: The journal entry to record the issuance of the bonds under International Financial Reporting Standards (IFRS).

(2)

To determine

To Prepare: The journal entry to record payment of interest on December 31, 2016 under IFRS.

(3)

To determine

To Prepare: The journal entry to record payment of interest on June 30, 2019 under IFRS.

(4)

To determine

To prepare: The journal entry to record the call of the bonds under IFRS.

Expert Solution & Answer

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Answer 5

Chapter 14, Problem 14.17P

(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. If selling price of the bond is equal to its face value, it is called as par on bond. If selling price of the bond is lesser than the face value, it is known as discount on bond. If selling price of the bond is greater than the face value, it is known as premium on bond.

International Financial Reporting Standards

They are commonly known as IFRS. These are set of accounting standards which are developed by independent (Non-profit) organization called as International Accounting Standards Board (IASB). These are universally accepted set of standards which state the rules and procedures for accounting at global level.

Generally Accepted Accounting Principles

They are commonly known as GAAP. It is a collection of generally practiced and followed rules and standards of accounting. GAAP provides global guidelines for preparation and disclosure of financial statements of public companies. It is created and developed by International Accounting Standards Board (IASB).

To Prepare: The journal entry to record the issuance of the bonds under International Financial Reporting Standards (IFRS).

(2)

To determine

To Prepare: The journal entry to record payment of interest on December 31, 2016 under IFRS.

(3)

To determine

To Prepare: The journal entry to record payment of interest on June 30, 2019 under IFRS.

(4)

To determine

To prepare: The journal entry to record the call of the bonds under IFRS.

Answer 6

Chapter 14, Problem 14.17P

(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. If selling price of the bond is equal to its face value, it is called as par on bond. If selling price of the bond is lesser than the face value, it is known as discount on bond. If selling price of the bond is greater than the face value, it is known as premium on bond.

International Financial Reporting Standards

They are commonly known as IFRS. These are set of accounting standards which are developed by independent (Non-profit) organization called as International Accounting Standards Board (IASB). These are universally accepted set of standards which state the rules and procedures for accounting at global level.

Generally Accepted Accounting Principles

They are commonly known as GAAP. It is a collection of generally practiced and followed rules and standards of accounting. GAAP provides global guidelines for preparation and disclosure of financial statements of public companies. It is created and developed by International Accounting Standards Board (IASB).

To Prepare: The journal entry to record the issuance of the bonds under International Financial Reporting Standards (IFRS).

Answer 7

Chapter 14, Problem 14.17P

(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. If selling price of the bond is equal to its face value, it is called as par on bond. If selling price of the bond is lesser than the face value, it is known as discount on bond. If selling price of the bond is greater than the face value, it is known as premium on bond.

International Financial Reporting Standards

They are commonly known as IFRS. These are set of accounting standards which are developed by independent (Non-profit) organization called as International Accounting Standards Board (IASB). These are universally accepted set of standards which state the rules and procedures for accounting at global level.

Generally Accepted Accounting Principles

They are commonly known as GAAP. It is a collection of generally practiced and followed rules and standards of accounting. GAAP provides global guidelines for preparation and disclosure of financial statements of public companies. It is created and developed by International Accounting Standards Board (IASB).

To Prepare: The journal entry to record the issuance of the bonds under International Financial Reporting Standards (IFRS).

Answer 8

(2)

To determine

To Prepare: The journal entry to record payment of interest on December 31, 2016 under IFRS.

Answer 9

(2)

To determine

To Prepare: The journal entry to record payment of interest on December 31, 2016 under IFRS.

Answer 10

(3)

To determine

To Prepare: The journal entry to record payment of interest on June 30, 2019 under IFRS.

Answer 11

(3)

To determine

To Prepare: The journal entry to record payment of interest on June 30, 2019 under IFRS.

Answer 12

(4)

To determine

To prepare: The journal entry to record the call of the bonds under IFRS.

Answer 13

(4)

To determine

To prepare: The journal entry to record the call of the bonds under IFRS.

Answer 14

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Answer 15

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Answer 16

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Answer 17

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 - 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 Ch. 14 - When a notes stated rate of interest is...

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 payment of interest on December 31, 2016 under IFRS.

To Prepare: The journal entry to record payment of interest on June 30, 2019 under IFRS.

To prepare: The journal entry to record the call of the bonds under IFRS.

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Chapter 14 Solutions