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. To Calculate: The fair value of bonds at December 1, 2016.

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Answer 1

Question

Chapter 14, Problem 14.31E

(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.

To Calculate: The fair value of bonds at December 1, 2016.

(2)

To determine

To Prepare: The journal entry to record interest on June 30, 2016.

(3)

To determine

To Prepare: The journal entry to record interest on December 31, 2016.

(4)

To determine

To Prepare: The journal entry to adjust the bonds to the fair value at December 31, 2016.

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Answer 2

Question

Chapter 14, Problem 14.31E

(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.

To Calculate: The fair value of bonds at December 1, 2016.

(2)

To determine

To Prepare: The journal entry to record interest on June 30, 2016.

(3)

To determine

To Prepare: The journal entry to record interest on December 31, 2016.

(4)

To determine

To Prepare: The journal entry to adjust the bonds to the fair value at December 31, 2016.

Expert Solution & Answer

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Answer 3

Question

Chapter 14, Problem 14.31E

(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.

To Calculate: The fair value of bonds at December 1, 2016.

(2)

To determine

To Prepare: The journal entry to record interest on June 30, 2016.

(3)

To determine

To Prepare: The journal entry to record interest on December 31, 2016.

(4)

To determine

To Prepare: The journal entry to adjust the bonds to the fair value at December 31, 2016.

Expert Solution & Answer

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Answer 4

Question

Chapter 14, Problem 14.31E

(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.

To Calculate: The fair value of bonds at December 1, 2016.

(2)

To determine

To Prepare: The journal entry to record interest on June 30, 2016.

(3)

To determine

To Prepare: The journal entry to record interest on December 31, 2016.

(4)

To determine

To Prepare: The journal entry to adjust the bonds to the fair value at December 31, 2016.

Expert Solution & Answer

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Answer 5

Chapter 14, Problem 14.31E

(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.

To Calculate: The fair value of bonds at December 1, 2016.

(2)

To determine

To Prepare: The journal entry to record interest on June 30, 2016.

(3)

To determine

To Prepare: The journal entry to record interest on December 31, 2016.

(4)

To determine

To Prepare: The journal entry to adjust the bonds to the fair value at December 31, 2016.

Answer 6

Chapter 14, Problem 14.31E

(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.

To Calculate: The fair value of bonds at December 1, 2016.

Answer 7

Chapter 14, Problem 14.31E

(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.

To Calculate: The fair value of bonds at December 1, 2016.

Answer 8

(2)

To determine

To Prepare: The journal entry to record interest on June 30, 2016.

Answer 9

(2)

To determine

To Prepare: The journal entry to record interest on June 30, 2016.

Answer 10

(3)

To determine

To Prepare: The journal entry to record interest on December 31, 2016.

Answer 11

(3)

To determine

To Prepare: The journal entry to record interest on December 31, 2016.

Answer 12

(4)

To determine

To Prepare: The journal entry to adjust the bonds to the fair value at December 31, 2016.

Answer 13

(4)

To determine

To Prepare: The journal entry to adjust the bonds to the fair value at December 31, 2016.

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 - 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 interest on June 30, 2016.

To Prepare: The journal entry to record interest on December 31, 2016.

To Prepare: The journal entry to adjust the bonds to the fair value at December 31, 2016.

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Chapter 14 Solutions