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. To Prepare : Journal entry to record issuance of the bonds.

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Answer 1

Question

Chapter 14, Problem 14.6EX

a (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.

To Prepare: Journal entry to record issuance of the bonds.

b(2)

To determine

To Prepare: Journal entry to record first interest payment and amortization of discount on bonds.

3.

To determine

To Prepare: Journal entry to record second interest payment and amortization of discount on bonds.

(b)

To determine

The amount of bond interest expense for first year.

(c)

To determine

To Explain: The reason why the company was able to issue the bonds for $17,138,298 rather than $18,500,000.

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Henderson Manufacturing produces a product with the following standard costs: • Direct materials: 3.5 liters per unit at $9.00 per liter Direct labor: 0.6 hours per unit at $18.50 per hour Variable overhead: 0.6 hours per unit at $6.50 per hour The company produced 3,800 units in June, using 13,600 liters of direct material and 2,320 direct labor hours. During the month, the company purchased 14,000 liters of direct material at $9.20 per liter. The actual direct labor rate was $18.80 per hour, and the actual variable overhead rate was $6.50 per hour. The company applies variable overhead on the basis of direct labor hours. The direct materials purchase variance is computed at the time of purchase. Compute the materials quantity variance for June.

Answer 2

Question

Chapter 14, Problem 14.6EX

a (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.

To Prepare: Journal entry to record issuance of the bonds.

b(2)

To determine

To Prepare: Journal entry to record first interest payment and amortization of discount on bonds.

3.

To determine

To Prepare: Journal entry to record second interest payment and amortization of discount on bonds.

(b)

To determine

The amount of bond interest expense for first year.

(c)

To determine

To Explain: The reason why the company was able to issue the bonds for $17,138,298 rather than $18,500,000.

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Answer 3

Question

Chapter 14, Problem 14.6EX

a (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.

To Prepare: Journal entry to record issuance of the bonds.

b(2)

To determine

To Prepare: Journal entry to record first interest payment and amortization of discount on bonds.

3.

To determine

To Prepare: Journal entry to record second interest payment and amortization of discount on bonds.

(b)

To determine

The amount of bond interest expense for first year.

(c)

To determine

To Explain: The reason why the company was able to issue the bonds for $17,138,298 rather than $18,500,000.

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Answer 4

Question

Chapter 14, Problem 14.6EX

a (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.

To Prepare: Journal entry to record issuance of the bonds.

b(2)

To determine

To Prepare: Journal entry to record first interest payment and amortization of discount on bonds.

3.

To determine

To Prepare: Journal entry to record second interest payment and amortization of discount on bonds.

(b)

To determine

The amount of bond interest expense for first year.

(c)

To determine

To Explain: The reason why the company was able to issue the bonds for $17,138,298 rather than $18,500,000.

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Answer 5

Chapter 14, Problem 14.6EX

a (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.

To Prepare: Journal entry to record issuance of the bonds.

b(2)

To determine

To Prepare: Journal entry to record first interest payment and amortization of discount on bonds.

3.

To determine

To Prepare: Journal entry to record second interest payment and amortization of discount on bonds.

(b)

To determine

The amount of bond interest expense for first year.

(c)

To determine

To Explain: The reason why the company was able to issue the bonds for $17,138,298 rather than $18,500,000.

Answer 6

Chapter 14, Problem 14.6EX

a (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.

To Prepare: Journal entry to record issuance of the bonds.

Answer 7

Chapter 14, Problem 14.6EX

a (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.

To Prepare: Journal entry to record issuance of the bonds.

Answer 8

b(2)

To determine

To Prepare: Journal entry to record first interest payment and amortization of discount on bonds.

Answer 9

b(2)

To determine

To Prepare: Journal entry to record first interest payment and amortization of discount on bonds.

Answer 10

3.

To determine

To Prepare: Journal entry to record second interest payment and amortization of discount on bonds.

Answer 11

3.

To determine

To Prepare: Journal entry to record second interest payment and amortization of discount on bonds.

Answer 12

(b)

To determine

The amount of bond interest expense for first year.

Answer 13

(b)

To determine

The amount of bond interest expense for first year.

Answer 14

(c)

To determine

To Explain: The reason why the company was able to issue the bonds for $17,138,298 rather than $18,500,000.

Answer 15

(c)

To determine

To Explain: The reason why the company was able to issue the bonds for $17,138,298 rather than $18,500,000.

Answer 16

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Answer 17

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Answer 18

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Answer 19

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 discount on bonds.

To Prepare: Journal entry to record second interest payment and amortization of discount on bonds.

The amount of bond interest expense for first year.

To Explain: The reason why the company was able to issue the bonds for $17,138,298 rather than $18,500,000.

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Chapter 14 Solutions