Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing money from investors to raise fund for financing the operations. Bonds Payable: Bonds payable are referred to long-term debts of the business, issued to various lenders known as bondholders, generally in multiples of $1,000 per bond, to raise fund for financing the operations. Discount on bonds payable: It occurs when the bonds are issued at a low price than the face value. Effective-interest amortization method: Effective-interest amortization method it is an amortization model that apportions the amount of bond discount or premium based on the market interest rate. To Prepare : Journal entry to record the amount of cash proceeds from the issuance of the bonds on July 1, 2016.

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Answer 1

Question

Chapter 14, Problem 14.5BPR

1.

To determine

Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing money from investors to raise fund for financing the operations.

Bonds Payable: Bonds payable are referred to long-term debts of the business, issued to various lenders known as bondholders, generally in multiples of $1,000 per bond, to raise fund for financing the operations.

Discount on bonds payable: It occurs when the bonds are issued at a low price than the face value.

Effective-interest amortization method: Effective-interest amortization method it is an amortization model that apportions the amount of bond discount or premium based on the market interest rate.

To Prepare: Journal entry to record the amount of cash proceeds from the issuance of the bonds on July 1, 2016.

2 (a)

To determine

To Prepare: Journal entry to record first interest payment and amortization of bond discount on December 31, 2016.

2 (b)

To determine

To Prepare: Journal entry to record second interest payment and amortization of bond discount on June 30, 2017.

3.

To determine

The amount of total interest expense for 2016.

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Students have asked these similar questions

During its first year. Concord, Inc., showed a $33 per unit profit under absorption costing but would have reported a total profit of $19,300 less under variable costing. If production exceeded sales by 825 units and an average contribution margin of 77% was maintained, what is apparent: a. Fixed cost per unit? b. Sales price per unit?

4 POINTS

What is the gain or loss she will recognise on the sale?

Answer 2

Question

Chapter 14, Problem 14.5BPR

1.

To determine

Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing money from investors to raise fund for financing the operations.

Bonds Payable: Bonds payable are referred to long-term debts of the business, issued to various lenders known as bondholders, generally in multiples of $1,000 per bond, to raise fund for financing the operations.

Discount on bonds payable: It occurs when the bonds are issued at a low price than the face value.

Effective-interest amortization method: Effective-interest amortization method it is an amortization model that apportions the amount of bond discount or premium based on the market interest rate.

To Prepare: Journal entry to record the amount of cash proceeds from the issuance of the bonds on July 1, 2016.

2 (a)

To determine

To Prepare: Journal entry to record first interest payment and amortization of bond discount on December 31, 2016.

2 (b)

To determine

To Prepare: Journal entry to record second interest payment and amortization of bond discount on June 30, 2017.

3.

To determine

The amount of total interest expense for 2016.

Expert Solution & Answer

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Answer 3

Question

Chapter 14, Problem 14.5BPR

1.

To determine

Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing money from investors to raise fund for financing the operations.

Bonds Payable: Bonds payable are referred to long-term debts of the business, issued to various lenders known as bondholders, generally in multiples of $1,000 per bond, to raise fund for financing the operations.

Discount on bonds payable: It occurs when the bonds are issued at a low price than the face value.

Effective-interest amortization method: Effective-interest amortization method it is an amortization model that apportions the amount of bond discount or premium based on the market interest rate.

To Prepare: Journal entry to record the amount of cash proceeds from the issuance of the bonds on July 1, 2016.

2 (a)

To determine

To Prepare: Journal entry to record first interest payment and amortization of bond discount on December 31, 2016.

2 (b)

To determine

To Prepare: Journal entry to record second interest payment and amortization of bond discount on June 30, 2017.

3.

To determine

The amount of total interest expense for 2016.

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Answer 4

Question

Chapter 14, Problem 14.5BPR

1.

To determine

Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing money from investors to raise fund for financing the operations.

Bonds Payable: Bonds payable are referred to long-term debts of the business, issued to various lenders known as bondholders, generally in multiples of $1,000 per bond, to raise fund for financing the operations.

Discount on bonds payable: It occurs when the bonds are issued at a low price than the face value.

Effective-interest amortization method: Effective-interest amortization method it is an amortization model that apportions the amount of bond discount or premium based on the market interest rate.

To Prepare: Journal entry to record the amount of cash proceeds from the issuance of the bonds on July 1, 2016.

2 (a)

To determine

To Prepare: Journal entry to record first interest payment and amortization of bond discount on December 31, 2016.

2 (b)

To determine

To Prepare: Journal entry to record second interest payment and amortization of bond discount on June 30, 2017.

3.

To determine

The amount of total interest expense for 2016.

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Answer 5

Chapter 14, Problem 14.5BPR

1.

To determine

Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing money from investors to raise fund for financing the operations.

Bonds Payable: Bonds payable are referred to long-term debts of the business, issued to various lenders known as bondholders, generally in multiples of $1,000 per bond, to raise fund for financing the operations.

Discount on bonds payable: It occurs when the bonds are issued at a low price than the face value.

Effective-interest amortization method: Effective-interest amortization method it is an amortization model that apportions the amount of bond discount or premium based on the market interest rate.

To Prepare: Journal entry to record the amount of cash proceeds from the issuance of the bonds on July 1, 2016.

2 (a)

To determine

To Prepare: Journal entry to record first interest payment and amortization of bond discount on December 31, 2016.

2 (b)

To determine

To Prepare: Journal entry to record second interest payment and amortization of bond discount on June 30, 2017.

3.

To determine

The amount of total interest expense for 2016.

Answer 6

Chapter 14, Problem 14.5BPR

1.

To determine

Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing money from investors to raise fund for financing the operations.

Bonds Payable: Bonds payable are referred to long-term debts of the business, issued to various lenders known as bondholders, generally in multiples of $1,000 per bond, to raise fund for financing the operations.

Discount on bonds payable: It occurs when the bonds are issued at a low price than the face value.

Effective-interest amortization method: Effective-interest amortization method it is an amortization model that apportions the amount of bond discount or premium based on the market interest rate.

To Prepare: Journal entry to record the amount of cash proceeds from the issuance of the bonds on July 1, 2016.

Answer 7

Chapter 14, Problem 14.5BPR

1.

To determine

Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing money from investors to raise fund for financing the operations.

Bonds Payable: Bonds payable are referred to long-term debts of the business, issued to various lenders known as bondholders, generally in multiples of $1,000 per bond, to raise fund for financing the operations.

Discount on bonds payable: It occurs when the bonds are issued at a low price than the face value.

Effective-interest amortization method: Effective-interest amortization method it is an amortization model that apportions the amount of bond discount or premium based on the market interest rate.

To Prepare: Journal entry to record the amount of cash proceeds from the issuance of the bonds on July 1, 2016.

Answer 8

2 (a)

To determine

To Prepare: Journal entry to record first interest payment and amortization of bond discount on December 31, 2016.

Answer 9

2 (a)

To determine

To Prepare: Journal entry to record first interest payment and amortization of bond discount on December 31, 2016.

Answer 10

2 (b)

To determine

To Prepare: Journal entry to record second interest payment and amortization of bond discount on June 30, 2017.

Answer 11

2 (b)

To determine

To Prepare: Journal entry to record second interest payment and amortization of bond discount on June 30, 2017.

Answer 12

3.

To determine

The amount of total interest expense for 2016.

Answer 13

3.

To determine

The amount of total interest expense for 2016.

Answer 14

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Answer 15

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Answer 16

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Answer 17

Ch. 14 - Describe the two distinct obligations incurred by...Ch. 14 - Explain the meaning of each of the following terms...Ch. 14 - If you asked your broker to buy you a 12% bond...Ch. 14 - Prob. 4DQ Ch. 14 - If bonds issued by a corporation are sold at...Ch. 14 - The following data relate to a 2,000,000, 8% bond...Ch. 14 - Bonds Payable has a balance of 5,000,000, and...Ch. 14 - What is a mortgage note?Ch. 14 - Fleeson Company needs additional funds to purchase...Ch. 14 - In what section of the balance sheet would a bond...

Solution Summary: The author explains that bonds are long-term promissory notes that are represented by a company while borrowing money from investors to raise fund for financing the operations.

To Prepare: Journal entry to record first interest payment and amortization of bond discount on December 31, 2016.

To Prepare: Journal entry to record second interest payment and amortization of bond discount on June 30, 2017.

The amount of total interest expense for 2016.

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Chapter 14 Solutions