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. Accrued interest The amount of interest that has already occurred, but not yet the payment is madeis known as accrued interest. Interest Expense The cost of debt which is occurred during a particular period of time is called interest expense. The interest amount is payable on the principal amount of debt at a fixed interest rate. The price of the bonds.

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Answer 1

Question

Chapter 14, Problem 14.22P

(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.

Accrued interest

The amount of interest that has already occurred, but not yet the payment is madeis known as accrued interest.

Interest Expense

The cost of debt which is occurred during a particular period of time is called interest expense. The interest amount is payable on the principal amount of debt at a fixed interest rate.

The price of the bonds.

To determine

To Prepare: The journal entry to record the issuance of the bonds.

(2)

To determine

To Prepare: The journal entry to record the interest expense.

(3)

To determine

To Prepare: The journal entry to record the interest expense.

(4)

To determine

To Prepare: The journal entry to adjust the fair value presentation as on 31^st December 2016.

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Answer 2

Question

Chapter 14, Problem 14.22P

(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.

Accrued interest

The amount of interest that has already occurred, but not yet the payment is madeis known as accrued interest.

Interest Expense

The cost of debt which is occurred during a particular period of time is called interest expense. The interest amount is payable on the principal amount of debt at a fixed interest rate.

The price of the bonds.

To determine

To Prepare: The journal entry to record the issuance of the bonds.

(2)

To determine

To Prepare: The journal entry to record the interest expense.

(3)

To determine

To Prepare: The journal entry to record the interest expense.

(4)

To determine

To Prepare: The journal entry to adjust the fair value presentation as on 31^st December 2016.

Expert Solution & Answer

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Answer 3

Question

Chapter 14, Problem 14.22P

(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.

Accrued interest

The amount of interest that has already occurred, but not yet the payment is madeis known as accrued interest.

Interest Expense

The cost of debt which is occurred during a particular period of time is called interest expense. The interest amount is payable on the principal amount of debt at a fixed interest rate.

The price of the bonds.

To determine

To Prepare: The journal entry to record the issuance of the bonds.

(2)

To determine

To Prepare: The journal entry to record the interest expense.

(3)

To determine

To Prepare: The journal entry to record the interest expense.

(4)

To determine

To Prepare: The journal entry to adjust the fair value presentation as on 31^st December 2016.

Expert Solution & Answer

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Answer 4

Question

Chapter 14, Problem 14.22P

(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.

Accrued interest

The amount of interest that has already occurred, but not yet the payment is madeis known as accrued interest.

Interest Expense

The cost of debt which is occurred during a particular period of time is called interest expense. The interest amount is payable on the principal amount of debt at a fixed interest rate.

The price of the bonds.

To determine

To Prepare: The journal entry to record the issuance of the bonds.

(2)

To determine

To Prepare: The journal entry to record the interest expense.

(3)

To determine

To Prepare: The journal entry to record the interest expense.

(4)

To determine

To Prepare: The journal entry to adjust the fair value presentation as on 31^st December 2016.

Expert Solution & Answer

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Answer 5

Chapter 14, Problem 14.22P

(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.

Accrued interest

The amount of interest that has already occurred, but not yet the payment is madeis known as accrued interest.

Interest Expense

The cost of debt which is occurred during a particular period of time is called interest expense. The interest amount is payable on the principal amount of debt at a fixed interest rate.

The price of the bonds.

To determine

To Prepare: The journal entry to record the issuance of the bonds.

(2)

To determine

To Prepare: The journal entry to record the interest expense.

(3)

To determine

To Prepare: The journal entry to record the interest expense.

(4)

To determine

To Prepare: The journal entry to adjust the fair value presentation as on 31^st December 2016.

Answer 6

Chapter 14, Problem 14.22P

(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.

Accrued interest

The amount of interest that has already occurred, but not yet the payment is madeis known as accrued interest.

Interest Expense

The cost of debt which is occurred during a particular period of time is called interest expense. The interest amount is payable on the principal amount of debt at a fixed interest rate.

The price of the bonds.

Answer 7

Chapter 14, Problem 14.22P

(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.

Accrued interest

The amount of interest that has already occurred, but not yet the payment is madeis known as accrued interest.

Interest Expense

The cost of debt which is occurred during a particular period of time is called interest expense. The interest amount is payable on the principal amount of debt at a fixed interest rate.

The price of the bonds.

Answer 8

To determine

To Prepare: The journal entry to record the issuance of the bonds.

Answer 9

To determine

To Prepare: The journal entry to record the issuance of the bonds.

Answer 10

(2)

To determine

To Prepare: The journal entry to record the interest expense.

Answer 11

(2)

To determine

To Prepare: The journal entry to record the interest expense.

Answer 12

(3)

To determine

To Prepare: The journal entry to record the interest expense.

Answer 13

(3)

To determine

To Prepare: The journal entry to record the interest expense.

Answer 14

(4)

To determine

To Prepare: The journal entry to adjust the fair value presentation as on 31^st December 2016.

Answer 15

(4)

To determine

To Prepare: The journal entry to adjust the fair value presentation as on 31^st December 2016.

Answer 16

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Answer 17

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Answer 18

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Answer 19

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 - Prob. 14.5Q 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

To Prepare: The journal entry to record the issuance of the bonds.

To Prepare: The journal entry to record the interest expense.

To Prepare: The journal entry to record the interest expense.

To Prepare: The journal entry to adjust the fair value presentation as on 31st December 2016.

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Chapter 14 Solutions

To Prepare: The journal entry to adjust the fair value presentation as on 31^st December 2016.