
a (1)
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:
b(2)
To Prepare: Journal entry to record first interest payment and amortization of discount on bonds.
3.
To Prepare: Journal entry to record second interest payment and amortization of discount on bonds.
(b)
The amount of bond interest expense for first year.
(c)
To Explain: The reason why the company was able to issue the bonds for $17,138,298 rather than $18,500,000.

Want to see the full answer?
Check out a sample textbook solution
Chapter 14 Solutions
Bundle: Accounting, Loose-Leaf Version, 26th + LMS Integrated for CengageNOW, 2 terms Printed Access Card
- Hello tutor please help me this problemarrow_forwardAllu is a salaried employee who normally works a 37-hour week and is paid a weekly salary of $675.00. The agreement that he has with his employer states that his salary is to cover all hours worked up to and including 40. This week, Caplan worked 42 hours. Calculate his gross pay.arrow_forwardWhat is the total direct materials cost variance?arrow_forward
- Please give me correct answer this financial accounting question not use ai please don'tarrow_forwardPlease give me answer general accounting questionarrow_forwardCrestwood Corporation has the following financial data: • Profit Margin: 6.3% • Total Asset Turnover: 2.10 • Return on Equity (ROE): 18.90% What is the firm's Debt-Equity Ratio?arrow_forward
- Excel Applications for Accounting PrinciplesAccountingISBN:9781111581565Author:Gaylord N. SmithPublisher:Cengage LearningCollege Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College
- Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage LearningFinancial AccountingAccountingISBN:9781305088436Author:Carl Warren, Jim Reeve, Jonathan DuchacPublisher:Cengage LearningIntermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning




