The issue price of the bond. Given information: Company issued bonds worth $700,000 at Par. Term period for conversion is 4 years Interest is payable semi-annually each January 1 and July 1. Market rate of interest is 4%. Cost of issuing bonds is $3,600. Bonds retired early for $655,000.

Question

Audit, Fraud, Or Forensic Accounting Introduce yourself to your peers by sharing something unique about your background. Explain how you expect this course will help you move forward in your current or future career. This course covers forensic accounting, so it's important to establish the differences between an audit, a fraud examination, and a forensic accounting engagement. Think about the fraud conviction of Elizabeth Holmes, as described in the video, "Elizabeth Holmes Found Guilty in Theranos Fraud Trial." Then respond to the following: Imagine you are assigned to the Theranos case. Write the first five questions you would ask if you were an auditor, the first five questions as a fraud examiner, and the first five as a forensic accountant. After your questions, explain why the questions and approaches are different among the three roles. Be sure to respond to at least one of your classmates' posts.

Answer 1

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 14, Problem 14.4P

a.

To determine

The issue price of the bond.

Given information:

Company issued bonds worth $700,000 at Par.

Term period for conversion is 4 years

Interest is payable semi-annually each January 1 and July 1.

Market rate of interest is 4%.

Cost of issuing bonds is $3,600.

Bonds retired early for $655,000.

b.

To determine

To prepare: The amortization table for the bond issue.

c.

To determine

To prepare: The journal for recording issuing bond and the entry as on 31^st December, 2018.

d.

To determine

The effects of the bond issue and the amortization of discount in income statement, cash flow statement and balance sheet of year 2018.

e.

To determine

To prepare: The journal for recording early retirement of bond on November 30, 2019.

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Audit, Fraud, Or Forensic Accounting Introduce yourself to your peers by sharing something unique about your background. Explain how you expect this course will help you move forward in your current or future career. This course covers forensic accounting, so it's important to establish the differences between an audit, a fraud examination, and a forensic accounting engagement. Think about the fraud conviction of Elizabeth Holmes, as described in the video, "Elizabeth Holmes Found Guilty in Theranos Fraud Trial." Then respond to the following: Imagine you are assigned to the Theranos case. Write the first five questions you would ask if you were an auditor, the first five questions as a fraud examiner, and the first five as a forensic accountant. After your questions, explain why the questions and approaches are different among the three roles. Be sure to respond to at least one of your classmates' posts.

Financial Account subject

ACCOUNT QUESTIONS

Answer 2

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 14, Problem 14.4P

a.

To determine

The issue price of the bond.

Given information:

Company issued bonds worth $700,000 at Par.

Term period for conversion is 4 years

Interest is payable semi-annually each January 1 and July 1.

Market rate of interest is 4%.

Cost of issuing bonds is $3,600.

Bonds retired early for $655,000.

b.

To determine

To prepare: The amortization table for the bond issue.

c.

To determine

To prepare: The journal for recording issuing bond and the entry as on 31^st December, 2018.

d.

To determine

The effects of the bond issue and the amortization of discount in income statement, cash flow statement and balance sheet of year 2018.

e.

To determine

To prepare: The journal for recording early retirement of bond on November 30, 2019.

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Answer 3

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 14, Problem 14.4P

a.

To determine

The issue price of the bond.

Given information:

Company issued bonds worth $700,000 at Par.

Term period for conversion is 4 years

Interest is payable semi-annually each January 1 and July 1.

Market rate of interest is 4%.

Cost of issuing bonds is $3,600.

Bonds retired early for $655,000.

b.

To determine

To prepare: The amortization table for the bond issue.

c.

To determine

To prepare: The journal for recording issuing bond and the entry as on 31^st December, 2018.

d.

To determine

The effects of the bond issue and the amortization of discount in income statement, cash flow statement and balance sheet of year 2018.

e.

To determine

To prepare: The journal for recording early retirement of bond on November 30, 2019.

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Answer 4

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 14, Problem 14.4P

a.

To determine

The issue price of the bond.

Given information:

Company issued bonds worth $700,000 at Par.

Term period for conversion is 4 years

Interest is payable semi-annually each January 1 and July 1.

Market rate of interest is 4%.

Cost of issuing bonds is $3,600.

Bonds retired early for $655,000.

b.

To determine

To prepare: The amortization table for the bond issue.

c.

To determine

To prepare: The journal for recording issuing bond and the entry as on 31^st December, 2018.

d.

To determine

The effects of the bond issue and the amortization of discount in income statement, cash flow statement and balance sheet of year 2018.

e.

To determine

To prepare: The journal for recording early retirement of bond on November 30, 2019.

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Answer 5

Chapter 14, Problem 14.4P

a.

To determine

The issue price of the bond.

Given information:

Company issued bonds worth $700,000 at Par.

Term period for conversion is 4 years

Interest is payable semi-annually each January 1 and July 1.

Market rate of interest is 4%.

Cost of issuing bonds is $3,600.

Bonds retired early for $655,000.

b.

To determine

To prepare: The amortization table for the bond issue.

c.

To determine

To prepare: The journal for recording issuing bond and the entry as on 31^st December, 2018.

d.

To determine

The effects of the bond issue and the amortization of discount in income statement, cash flow statement and balance sheet of year 2018.

e.

To determine

To prepare: The journal for recording early retirement of bond on November 30, 2019.

Answer 6

Chapter 14, Problem 14.4P

a.

To determine

The issue price of the bond.

Given information:

Company issued bonds worth $700,000 at Par.

Term period for conversion is 4 years

Interest is payable semi-annually each January 1 and July 1.

Market rate of interest is 4%.

Cost of issuing bonds is $3,600.

Bonds retired early for $655,000.

Answer 7

Chapter 14, Problem 14.4P

a.

To determine

The issue price of the bond.

Given information:

Company issued bonds worth $700,000 at Par.

Term period for conversion is 4 years

Interest is payable semi-annually each January 1 and July 1.

Market rate of interest is 4%.

Cost of issuing bonds is $3,600.

Bonds retired early for $655,000.

Answer 8

b.

To determine

To prepare: The amortization table for the bond issue.

Answer 9

b.

To determine

To prepare: The amortization table for the bond issue.

Answer 10

c.

To determine

To prepare: The journal for recording issuing bond and the entry as on 31^st December, 2018.

Answer 11

c.

To determine

To prepare: The journal for recording issuing bond and the entry as on 31^st December, 2018.

Answer 12

d.

To determine

The effects of the bond issue and the amortization of discount in income statement, cash flow statement and balance sheet of year 2018.

Answer 13

d.

To determine

The effects of the bond issue and the amortization of discount in income statement, cash flow statement and balance sheet of year 2018.

Answer 14

e.

To determine

To prepare: The journal for recording early retirement of bond on November 30, 2019.

Answer 15

e.

To determine

To prepare: The journal for recording early retirement of bond on November 30, 2019.

Answer 16

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Ch. 14 - What conditions or terms does a note payable...Ch. 14 - If the market rate of interest exceeds the face or...Ch. 14 - What is included in bond issue costs and how...Ch. 14 - Prob. 14.4Q Ch. 14 - When a bond is issued at a discount, will its...Ch. 14 - Prob. 14.6Q Ch. 14 - Prob. 14.7Q Ch. 14 - Under IFRS, how do firms account for convertible...Ch. 14 - Prob. 14.9Q Ch. 14 - Can companies reclassify short-term debt expected...

The issue price of the bond. Given information: Company issued bonds worth $700,000 at Par. Term period for conversion is 4 years Interest is payable semi-annually each January 1 and July 1. Market rate of interest is 4%. Cost of issuing bonds is $3,600. Bonds retired early for $655,000.

The issue price of the bond. Given information: Company issued bonds worth $700,000 at Par. Term period for conversion is 4 years Interest is payable semi-annually each January 1 and July 1. Market rate of interest is 4%. Cost of issuing bonds is $3,600. Bonds retired early for $655,000.

To prepare: The amortization table for the bond issue.

To prepare: The journal for recording issuing bond and the entry as on 31st December, 2018.

The effects of the bond issue and the amortization of discount in income statement, cash flow statement and balance sheet of year 2018.

To prepare: The journal for recording early retirement of bond on November 30, 2019.

Chapter 14 Solutions

The issue price of the bond.

Given information:

Company issued bonds worth $700,000 at Par.

Term period for conversion is 4 years

Interest is payable semi-annually each January 1 and July 1.

Market rate of interest is 4%.

Cost of issuing bonds is $3,600.

Bonds retired early for $655,000.

To prepare: The journal for recording issuing bond and the entry as on 31^st December, 2018.