The issue price of the bond. Given information: Company issued bonds worth $2,100,000. Term period for conversion is 5 years Market rate of interest is 9%.

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Answer 1

Question

Chapter 14, Problem 14.19E

a.

To determine

The issue price of the bond.

Given information:

Company issued bonds worth $2,100,000.

Term period for conversion is 5 years

Market rate of interest is 9%.

b.

To determine

To prepare: The journal entry to record issuance of the bonds assuming warrants as non-detachable using proportionate method.

c.

To determine

To prepare: The journal entry to record issuance of the bonds assuming warrants as detachable using proportionate method.

d.

To determine

To prepare: The journal entry to record issuance of bonds assuming that the warrants are detachable using the incremental method.

e.

To determine

To prepare: Journal using proportionate method for recording exercise of all warrants.

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Answer 2

Question

Chapter 14, Problem 14.19E

a.

To determine

The issue price of the bond.

Given information:

Company issued bonds worth $2,100,000.

Term period for conversion is 5 years

Market rate of interest is 9%.

b.

To determine

To prepare: The journal entry to record issuance of the bonds assuming warrants as non-detachable using proportionate method.

c.

To determine

To prepare: The journal entry to record issuance of the bonds assuming warrants as detachable using proportionate method.

d.

To determine

To prepare: The journal entry to record issuance of bonds assuming that the warrants are detachable using the incremental method.

e.

To determine

To prepare: Journal using proportionate method for recording exercise of all warrants.

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Answer 3

Question

Chapter 14, Problem 14.19E

a.

To determine

The issue price of the bond.

Given information:

Company issued bonds worth $2,100,000.

Term period for conversion is 5 years

Market rate of interest is 9%.

b.

To determine

To prepare: The journal entry to record issuance of the bonds assuming warrants as non-detachable using proportionate method.

c.

To determine

To prepare: The journal entry to record issuance of the bonds assuming warrants as detachable using proportionate method.

d.

To determine

To prepare: The journal entry to record issuance of bonds assuming that the warrants are detachable using the incremental method.

e.

To determine

To prepare: Journal using proportionate method for recording exercise of all warrants.

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Answer 4

Question

Chapter 14, Problem 14.19E

a.

To determine

The issue price of the bond.

Given information:

Company issued bonds worth $2,100,000.

Term period for conversion is 5 years

Market rate of interest is 9%.

b.

To determine

To prepare: The journal entry to record issuance of the bonds assuming warrants as non-detachable using proportionate method.

c.

To determine

To prepare: The journal entry to record issuance of the bonds assuming warrants as detachable using proportionate method.

d.

To determine

To prepare: The journal entry to record issuance of bonds assuming that the warrants are detachable using the incremental method.

e.

To determine

To prepare: Journal using proportionate method for recording exercise of all warrants.

Expert Solution & Answer

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Answer 5

Chapter 14, Problem 14.19E

a.

To determine

The issue price of the bond.

Given information:

Company issued bonds worth $2,100,000.

Term period for conversion is 5 years

Market rate of interest is 9%.

b.

To determine

To prepare: The journal entry to record issuance of the bonds assuming warrants as non-detachable using proportionate method.

c.

To determine

To prepare: The journal entry to record issuance of the bonds assuming warrants as detachable using proportionate method.

d.

To determine

To prepare: The journal entry to record issuance of bonds assuming that the warrants are detachable using the incremental method.

e.

To determine

To prepare: Journal using proportionate method for recording exercise of all warrants.

Answer 6

Chapter 14, Problem 14.19E

a.

To determine

The issue price of the bond.

Given information:

Company issued bonds worth $2,100,000.

Term period for conversion is 5 years

Market rate of interest is 9%.

Answer 7

Chapter 14, Problem 14.19E

a.

To determine

The issue price of the bond.

Given information:

Company issued bonds worth $2,100,000.

Term period for conversion is 5 years

Market rate of interest is 9%.

Answer 8

b.

To determine

To prepare: The journal entry to record issuance of the bonds assuming warrants as non-detachable using proportionate method.

Answer 9

b.

To determine

To prepare: The journal entry to record issuance of the bonds assuming warrants as non-detachable using proportionate method.

Answer 10

c.

To determine

To prepare: The journal entry to record issuance of the bonds assuming warrants as detachable using proportionate method.

Answer 11

c.

To determine

To prepare: The journal entry to record issuance of the bonds assuming warrants as detachable using proportionate method.

Answer 12

d.

To determine

To prepare: The journal entry to record issuance of bonds assuming that the warrants are detachable using the incremental method.

Answer 13

d.

To determine

To prepare: The journal entry to record issuance of bonds assuming that the warrants are detachable using the incremental method.

Answer 14

e.

To determine

To prepare: Journal using proportionate method for recording exercise of all warrants.

Answer 15

e.

To determine

To prepare: Journal using proportionate method for recording exercise of all warrants.

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 $2,100,000. Term period for conversion is 5 years Market rate of interest is 9%.

The issue price of the bond. Given information: Company issued bonds worth $2,100,000. Term period for conversion is 5 years Market rate of interest is 9%.

To prepare: The journal entry to record issuance of the bonds assuming warrants as non-detachable using proportionate method.

To prepare: The journal entry to record issuance of the bonds assuming warrants as detachable using proportionate method.

To prepare: The journal entry to record issuance of bonds assuming that the warrants are detachable using the incremental method.

To prepare: Journal using proportionate method for recording exercise of all warrants.

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Chapter 14 Solutions

The issue price of the bond.

Given information:

Company issued bonds worth $2,100,000.

Term period for conversion is 5 years

Market rate of interest is 9%.