Bond: Bond refers to a debt instrument or debt security that has a longer period for maturity with some component of interest or return to be received on the amount paid on a bond. The issue price of the bond and the discount or premium on the bond.

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Answer 1

Question

Chapter 14, Problem 14.5P

a.

To determine

Concept Introduction:

Bond: Bond refers to a debt instrument or debt security that has a longer period for maturity with some component of interest or return to be received on the amount paid on a bond.

The issue price of the bond and the discount or premium on the bond.

b.

To determine

Concept Introduction:

Amortization: Amortization refers to the method of accounting which lower the booking amount or book value of any loan or any intangible asset over the time period.

To prepare: The amortization table for the bond issue using the effective rate of interest.

c.

To determine

Concept Introduction:

Journalizing: In accounts, for keeping records of all the business transactions properly, journalizing is being done for the transactions. Thus, it helps to track the transactions in chronological order as well as to maintain the records too.

To prepare: The journal for recording necessary entries for the bonds for the first year.

d.

To determine

Concept Introduction:

Journalizing: In accounts, for keeping records of all the business transactions properly, journalizing is being done for the transactions. Thus, it helps to track the transactions in chronological order as well as to maintain the records too.

To prepare: The journal for recording interest accrual and amortization cost for the third year.

e.

To determine

Concept Introduction:

Journalizing:

In accounts, for keeping records of all the business transactions properly, journalizing is being done for the transactions. Thus, it helps to track the transactions in chronological order as well as to maintain the records too.

To prepare: The journal for recording payment of the bonds at maturity.

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On January 1 of the current year, Piper Company issues a 4-year, non-interest-bearing note with a face value of $8,000 and receives $4,952 in exchange. The recording of the issuance of the note includes a: a. credit to Notes Payable for $4,952. b. credit to Discount on Notes Payable for $3,048. c. debit to Discount on Notes Payable for $3,048. d. debit to Cash for $8,000.

Answer 2

Question

Chapter 14, Problem 14.5P

a.

To determine

Concept Introduction:

Bond: Bond refers to a debt instrument or debt security that has a longer period for maturity with some component of interest or return to be received on the amount paid on a bond.

The issue price of the bond and the discount or premium on the bond.

b.

To determine

Concept Introduction:

Amortization: Amortization refers to the method of accounting which lower the booking amount or book value of any loan or any intangible asset over the time period.

To prepare: The amortization table for the bond issue using the effective rate of interest.

c.

To determine

Concept Introduction:

Journalizing: In accounts, for keeping records of all the business transactions properly, journalizing is being done for the transactions. Thus, it helps to track the transactions in chronological order as well as to maintain the records too.

To prepare: The journal for recording necessary entries for the bonds for the first year.

d.

To determine

Concept Introduction:

Journalizing: In accounts, for keeping records of all the business transactions properly, journalizing is being done for the transactions. Thus, it helps to track the transactions in chronological order as well as to maintain the records too.

To prepare: The journal for recording interest accrual and amortization cost for the third year.

e.

To determine

Concept Introduction:

Journalizing:

In accounts, for keeping records of all the business transactions properly, journalizing is being done for the transactions. Thus, it helps to track the transactions in chronological order as well as to maintain the records too.

To prepare: The journal for recording payment of the bonds at maturity.

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Answer 3

Question

Chapter 14, Problem 14.5P

a.

To determine

Concept Introduction:

Bond: Bond refers to a debt instrument or debt security that has a longer period for maturity with some component of interest or return to be received on the amount paid on a bond.

The issue price of the bond and the discount or premium on the bond.

b.

To determine

Concept Introduction:

Amortization: Amortization refers to the method of accounting which lower the booking amount or book value of any loan or any intangible asset over the time period.

To prepare: The amortization table for the bond issue using the effective rate of interest.

c.

To determine

Concept Introduction:

Journalizing: In accounts, for keeping records of all the business transactions properly, journalizing is being done for the transactions. Thus, it helps to track the transactions in chronological order as well as to maintain the records too.

To prepare: The journal for recording necessary entries for the bonds for the first year.

d.

To determine

Concept Introduction:

Journalizing: In accounts, for keeping records of all the business transactions properly, journalizing is being done for the transactions. Thus, it helps to track the transactions in chronological order as well as to maintain the records too.

To prepare: The journal for recording interest accrual and amortization cost for the third year.

e.

To determine

Concept Introduction:

Journalizing:

In accounts, for keeping records of all the business transactions properly, journalizing is being done for the transactions. Thus, it helps to track the transactions in chronological order as well as to maintain the records too.

To prepare: The journal for recording payment of the bonds at maturity.

Expert Solution & Answer

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Answer 4

Question

Chapter 14, Problem 14.5P

a.

To determine

Concept Introduction:

Bond: Bond refers to a debt instrument or debt security that has a longer period for maturity with some component of interest or return to be received on the amount paid on a bond.

The issue price of the bond and the discount or premium on the bond.

b.

To determine

Concept Introduction:

Amortization: Amortization refers to the method of accounting which lower the booking amount or book value of any loan or any intangible asset over the time period.

To prepare: The amortization table for the bond issue using the effective rate of interest.

c.

To determine

Concept Introduction:

Journalizing: In accounts, for keeping records of all the business transactions properly, journalizing is being done for the transactions. Thus, it helps to track the transactions in chronological order as well as to maintain the records too.

To prepare: The journal for recording necessary entries for the bonds for the first year.

d.

To determine

Concept Introduction:

Journalizing: In accounts, for keeping records of all the business transactions properly, journalizing is being done for the transactions. Thus, it helps to track the transactions in chronological order as well as to maintain the records too.

To prepare: The journal for recording interest accrual and amortization cost for the third year.

e.

To determine

Concept Introduction:

Journalizing:

In accounts, for keeping records of all the business transactions properly, journalizing is being done for the transactions. Thus, it helps to track the transactions in chronological order as well as to maintain the records too.

To prepare: The journal for recording payment of the bonds at maturity.

Expert Solution & Answer

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Answer 5

Chapter 14, Problem 14.5P

a.

To determine

Concept Introduction:

Bond: Bond refers to a debt instrument or debt security that has a longer period for maturity with some component of interest or return to be received on the amount paid on a bond.

The issue price of the bond and the discount or premium on the bond.

b.

To determine

Concept Introduction:

Amortization: Amortization refers to the method of accounting which lower the booking amount or book value of any loan or any intangible asset over the time period.

To prepare: The amortization table for the bond issue using the effective rate of interest.

c.

To determine

Concept Introduction:

Journalizing: In accounts, for keeping records of all the business transactions properly, journalizing is being done for the transactions. Thus, it helps to track the transactions in chronological order as well as to maintain the records too.

To prepare: The journal for recording necessary entries for the bonds for the first year.

d.

To determine

Concept Introduction:

Journalizing: In accounts, for keeping records of all the business transactions properly, journalizing is being done for the transactions. Thus, it helps to track the transactions in chronological order as well as to maintain the records too.

To prepare: The journal for recording interest accrual and amortization cost for the third year.

e.

To determine

Concept Introduction:

Journalizing:

In accounts, for keeping records of all the business transactions properly, journalizing is being done for the transactions. Thus, it helps to track the transactions in chronological order as well as to maintain the records too.

To prepare: The journal for recording payment of the bonds at maturity.

Answer 6

Chapter 14, Problem 14.5P

a.

To determine

Concept Introduction:

Bond: Bond refers to a debt instrument or debt security that has a longer period for maturity with some component of interest or return to be received on the amount paid on a bond.

The issue price of the bond and the discount or premium on the bond.

Answer 7

Chapter 14, Problem 14.5P

a.

To determine

Concept Introduction:

Bond: Bond refers to a debt instrument or debt security that has a longer period for maturity with some component of interest or return to be received on the amount paid on a bond.

The issue price of the bond and the discount or premium on the bond.

Answer 8

b.

To determine

Concept Introduction:

Amortization: Amortization refers to the method of accounting which lower the booking amount or book value of any loan or any intangible asset over the time period.

To prepare: The amortization table for the bond issue using the effective rate of interest.

Answer 9

b.

To determine

Concept Introduction:

Amortization: Amortization refers to the method of accounting which lower the booking amount or book value of any loan or any intangible asset over the time period.

To prepare: The amortization table for the bond issue using the effective rate of interest.

Answer 10

c.

To determine

Concept Introduction:

Journalizing: In accounts, for keeping records of all the business transactions properly, journalizing is being done for the transactions. Thus, it helps to track the transactions in chronological order as well as to maintain the records too.

To prepare: The journal for recording necessary entries for the bonds for the first year.

Answer 11

c.

To determine

Concept Introduction:

Journalizing: In accounts, for keeping records of all the business transactions properly, journalizing is being done for the transactions. Thus, it helps to track the transactions in chronological order as well as to maintain the records too.

To prepare: The journal for recording necessary entries for the bonds for the first year.

Answer 12

d.

To determine

Concept Introduction:

Journalizing: In accounts, for keeping records of all the business transactions properly, journalizing is being done for the transactions. Thus, it helps to track the transactions in chronological order as well as to maintain the records too.

To prepare: The journal for recording interest accrual and amortization cost for the third year.

Answer 13

d.

To determine

Concept Introduction:

Journalizing: In accounts, for keeping records of all the business transactions properly, journalizing is being done for the transactions. Thus, it helps to track the transactions in chronological order as well as to maintain the records too.

To prepare: The journal for recording interest accrual and amortization cost for the third year.

Answer 14

e.

To determine

Concept Introduction:

Journalizing:

In accounts, for keeping records of all the business transactions properly, journalizing is being done for the transactions. Thus, it helps to track the transactions in chronological order as well as to maintain the records too.

To prepare: The journal for recording payment of the bonds at maturity.

Answer 15

e.

To determine

Concept Introduction:

Journalizing:

In accounts, for keeping records of all the business transactions properly, journalizing is being done for the transactions. Thus, it helps to track the transactions in chronological order as well as to maintain the records too.

To prepare: The journal for recording payment of the bonds at maturity.

Answer 16

Expert Solution & Answer

Answer 17

Expert Solution & Answer

Answer 18

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Answer 19

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Bond: Bond refers to a debt instrument or debt security that has a longer period for maturity with some component of interest or return to be received on the amount paid on a bond. The issue price of the bond and the discount or premium on the bond.

Concept Introduction: Bond: Bond refers to a debt instrument or debt security that has a longer period for maturity with some component of interest or return to be received on the amount paid on a bond. The issue price of the bond and the discount or premium on the bond.

Concept Introduction: Amortization: Amortization refers to the method of accounting which lower the booking amount or book value of any loan or any intangible asset over the time period. To prepare: The amortization table for the bond issue using the effective rate of interest.

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Chapter 14 Solutions

Concept Introduction:

Bond: Bond refers to a debt instrument or debt security that has a longer period for maturity with some component of interest or return to be received on the amount paid on a bond.

The issue price of the bond and the discount or premium on the bond.

Concept Introduction:

Amortization: Amortization refers to the method of accounting which lower the booking amount or book value of any loan or any intangible asset over the time period.

To prepare: The amortization table for the bond issue using the effective rate of interest.