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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Before issuing a report on the compilation of financial statements of a non-public entity, the accountant should: a. Apply analytical procedures to selected financial data to discover any material misstatements. b. Corroborate at least a sample of the assertions management has embodied in the financial statements. c. Inquire of the client's personnel whether the financial statements omit substantially all disclosures. d. Read the financial statements to consider whether the financial statements are free from obvious material errors.

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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.

Expert Solution & Answer

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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.

Expert Solution & Answer

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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

Expert Solution & Answer

Answer 17

Expert Solution & Answer

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%.