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. Straight-line amortization bond Straight line method of amortization is a process of amortizing premium on bond or discount on bond, which allocates the same amount of interest expense in each period of interest payment. Effective interest rate of amortization bond Effective interest rate method of amortization is a process of amortizing premium on bond or discount on bond, which allocates the different amount of interest expense in each period of interest payment, but at a constant percentage rate. To Prepare: The amortization schedule to determine the interest expenses at the effective interest rates.

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Answer 1

Question

Chapter 14, Problem 14.3P

(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.

Straight-line amortization bond

Straight line method of amortization is a process of amortizing premium on bond or discount on bond, which allocates the same amount of interest expense in each period of interest payment.

Effective interest rate of amortization bond

Effective interest rate method of amortization is a process of amortizing premium on bond or discount on bond, which allocates the different amount of interest expense in each period of interest payment, but at a constant percentage rate.

To Prepare: The amortization schedule to determine the interest expenses at the effective interest rates.

(2)

To determine

To Prepare: The amortization schedule to determine the interest expenses at straight line method.

(3)

To determine

To Prepare: The journal entry to record interest expenses as on 30^th June 2018 each of the two approaches.

(4)

To determine

To Explain: The pattern of interest differs between the two methods.

(5)

To determine

The price value of the bonds as on 30^th June 2018 for $10,000 of the

bonds.

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Students have asked these similar questions

Sam prepared a draft statement of profit or loss for the business as follows: $ $ Sales 256,800 Cost of sales Opening inventory 13,400 Purchases 145,000 Closing inventory (14,200) ––––––– (144,200) –––––––– Gross profit 112,600 Expenses (76,000) –––––––– Net profit 36,600 –––––––– Sam has not yet recorded the following items: • Carriage in of $2,300 • Discounts received of $3,900 • Carriage out of $1,950 After these amounts are recorded, what are the revised values for gross and net profit of Sam’s business?

Determine the return on total assets of this financial accounting question

Harbor Groceries began the current month with inventory costing $28,750, then purchased inventory at a cost of $70,560. The perpetual inventory system indicates that inventory costing $76,400 was sold during the month for $81,300. If an inventory count shows that inventory costing $21,600 is actually on hand at month-end, what amount of shrinkage occurred during the month?

Answer 2

Question

Chapter 14, Problem 14.3P

(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.

Straight-line amortization bond

Straight line method of amortization is a process of amortizing premium on bond or discount on bond, which allocates the same amount of interest expense in each period of interest payment.

Effective interest rate of amortization bond

Effective interest rate method of amortization is a process of amortizing premium on bond or discount on bond, which allocates the different amount of interest expense in each period of interest payment, but at a constant percentage rate.

To Prepare: The amortization schedule to determine the interest expenses at the effective interest rates.

(2)

To determine

To Prepare: The amortization schedule to determine the interest expenses at straight line method.

(3)

To determine

To Prepare: The journal entry to record interest expenses as on 30^th June 2018 each of the two approaches.

(4)

To determine

To Explain: The pattern of interest differs between the two methods.

(5)

To determine

The price value of the bonds as on 30^th June 2018 for $10,000 of the

bonds.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 14, Problem 14.3P

(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.

Straight-line amortization bond

Straight line method of amortization is a process of amortizing premium on bond or discount on bond, which allocates the same amount of interest expense in each period of interest payment.

Effective interest rate of amortization bond

Effective interest rate method of amortization is a process of amortizing premium on bond or discount on bond, which allocates the different amount of interest expense in each period of interest payment, but at a constant percentage rate.

To Prepare: The amortization schedule to determine the interest expenses at the effective interest rates.

(2)

To determine

To Prepare: The amortization schedule to determine the interest expenses at straight line method.

(3)

To determine

To Prepare: The journal entry to record interest expenses as on 30^th June 2018 each of the two approaches.

(4)

To determine

To Explain: The pattern of interest differs between the two methods.

(5)

To determine

The price value of the bonds as on 30^th June 2018 for $10,000 of the

bonds.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 14, Problem 14.3P

(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.

Straight-line amortization bond

Straight line method of amortization is a process of amortizing premium on bond or discount on bond, which allocates the same amount of interest expense in each period of interest payment.

Effective interest rate of amortization bond

Effective interest rate method of amortization is a process of amortizing premium on bond or discount on bond, which allocates the different amount of interest expense in each period of interest payment, but at a constant percentage rate.

To Prepare: The amortization schedule to determine the interest expenses at the effective interest rates.

(2)

To determine

To Prepare: The amortization schedule to determine the interest expenses at straight line method.

(3)

To determine

To Prepare: The journal entry to record interest expenses as on 30^th June 2018 each of the two approaches.

(4)

To determine

To Explain: The pattern of interest differs between the two methods.

(5)

To determine

The price value of the bonds as on 30^th June 2018 for $10,000 of the

bonds.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 14, Problem 14.3P

(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.

Straight-line amortization bond

Straight line method of amortization is a process of amortizing premium on bond or discount on bond, which allocates the same amount of interest expense in each period of interest payment.

Effective interest rate of amortization bond

Effective interest rate method of amortization is a process of amortizing premium on bond or discount on bond, which allocates the different amount of interest expense in each period of interest payment, but at a constant percentage rate.

To Prepare: The amortization schedule to determine the interest expenses at the effective interest rates.

(2)

To determine

To Prepare: The amortization schedule to determine the interest expenses at straight line method.

(3)

To determine

To Prepare: The journal entry to record interest expenses as on 30^th June 2018 each of the two approaches.

(4)

To determine

To Explain: The pattern of interest differs between the two methods.

(5)

To determine

The price value of the bonds as on 30^th June 2018 for $10,000 of the

bonds.

Answer 6

Chapter 14, Problem 14.3P

(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.

Straight-line amortization bond

Straight line method of amortization is a process of amortizing premium on bond or discount on bond, which allocates the same amount of interest expense in each period of interest payment.

Effective interest rate of amortization bond

Effective interest rate method of amortization is a process of amortizing premium on bond or discount on bond, which allocates the different amount of interest expense in each period of interest payment, but at a constant percentage rate.

To Prepare: The amortization schedule to determine the interest expenses at the effective interest rates.

Answer 7

Chapter 14, Problem 14.3P

(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.

Straight-line amortization bond

Straight line method of amortization is a process of amortizing premium on bond or discount on bond, which allocates the same amount of interest expense in each period of interest payment.

Effective interest rate of amortization bond

Effective interest rate method of amortization is a process of amortizing premium on bond or discount on bond, which allocates the different amount of interest expense in each period of interest payment, but at a constant percentage rate.

To Prepare: The amortization schedule to determine the interest expenses at the effective interest rates.

Answer 8

(2)

To determine

To Prepare: The amortization schedule to determine the interest expenses at straight line method.

Answer 9

(2)

To determine

To Prepare: The amortization schedule to determine the interest expenses at straight line method.

Answer 10

(3)

To determine

To Prepare: The journal entry to record interest expenses as on 30^th June 2018 each of the two approaches.

Answer 11

(3)

To determine

To Prepare: The journal entry to record interest expenses as on 30^th June 2018 each of the two approaches.

Answer 12

(4)

To determine

To Explain: The pattern of interest differs between the two methods.

Answer 13

(4)

To determine

To Explain: The pattern of interest differs between the two methods.

Answer 14

(5)

To determine

The price value of the bonds as on 30^th June 2018 for $10,000 of the

bonds.

Answer 15

(5)

To determine

The price value of the bonds as on 30^th June 2018 for $10,000 of the

bonds.

Answer 16

Expert Solution & Answer

Answer 17

Expert Solution & Answer

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 amortization schedule to determine the interest expenses at straight line method.

To Prepare: The journal entry to record interest expenses as on 30th June 2018 each of the two approaches.

To Explain: The pattern of interest differs between the two methods.

The price value of the bonds as on 30th June 2018 for $10,000 of the bonds.

Want to see the full answer?

Chapter 14 Solutions

To Prepare: The journal entry to record interest expenses as on 30^th June 2018 each of the two approaches.

The price value of the bonds as on 30^th June 2018 for $10,000 of the

bonds.