Bonds Bonds are a kind of interest bearing notes payable, usually issued by companies, universities and governmental organizations. It is a debt instrument used for the purpose of raising fund of the corporations or governmental agencies. If selling price of the bond is equal to its face value, it is called as par on bond. If selling price of the bond is lesser than the face value, it is known as discount on bond. If selling price of the bond is greater than the face value, it is known as premium on bond. Straight-line amortization bond Straight line method of amortization is a process of amortizing premium on bond or discount on bond, which allocates the same amount of interest expense in each period of interest payment. To Prepare: The journal entry to record the issuance of the bonds for Incorporation UF as on 1 st January 2016.

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Answer 1

Question

Chapter 14, Problem 14.8E

(1)

To determine

Bonds

Bonds are a kind of interest bearing notes payable, usually issued by companies, universities and governmental organizations. It is a debt instrument used for the purpose of raising fund of the corporations or governmental agencies. If selling price of the bond is equal to its face value, it is called as par on bond. If selling price of the bond is lesser than the face value, it is known as discount on bond. If selling price of the bond is greater than the face value, it is known as premium on bond.

Straight-line amortization bond

Straight line method of amortization is a process of amortizing premium on bond or discount on bond, which allocates the same amount of interest expense in each period of interest payment.

To Prepare: The journal entry to record the issuance of the bonds for Incorporation UF as on 1^st January 2016.

(2)

To determine

To Prepare: The journal entry to record interest revenue as on June 30, 2016.

(3)

To determine

To Prepare: The journal entry to record interest revenue on December 31, 2023.

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Answer 2

Question

Chapter 14, Problem 14.8E

(1)

To determine

Bonds

Bonds are a kind of interest bearing notes payable, usually issued by companies, universities and governmental organizations. It is a debt instrument used for the purpose of raising fund of the corporations or governmental agencies. If selling price of the bond is equal to its face value, it is called as par on bond. If selling price of the bond is lesser than the face value, it is known as discount on bond. If selling price of the bond is greater than the face value, it is known as premium on bond.

Straight-line amortization bond

Straight line method of amortization is a process of amortizing premium on bond or discount on bond, which allocates the same amount of interest expense in each period of interest payment.

To Prepare: The journal entry to record the issuance of the bonds for Incorporation UF as on 1^st January 2016.

(2)

To determine

To Prepare: The journal entry to record interest revenue as on June 30, 2016.

(3)

To determine

To Prepare: The journal entry to record interest revenue on December 31, 2023.

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Answer 3

Question

Chapter 14, Problem 14.8E

(1)

To determine

Bonds

Bonds are a kind of interest bearing notes payable, usually issued by companies, universities and governmental organizations. It is a debt instrument used for the purpose of raising fund of the corporations or governmental agencies. If selling price of the bond is equal to its face value, it is called as par on bond. If selling price of the bond is lesser than the face value, it is known as discount on bond. If selling price of the bond is greater than the face value, it is known as premium on bond.

Straight-line amortization bond

Straight line method of amortization is a process of amortizing premium on bond or discount on bond, which allocates the same amount of interest expense in each period of interest payment.

To Prepare: The journal entry to record the issuance of the bonds for Incorporation UF as on 1^st January 2016.

(2)

To determine

To Prepare: The journal entry to record interest revenue as on June 30, 2016.

(3)

To determine

To Prepare: The journal entry to record interest revenue on December 31, 2023.

Expert Solution & Answer

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Answer 4

Question

Chapter 14, Problem 14.8E

(1)

To determine

Bonds

Bonds are a kind of interest bearing notes payable, usually issued by companies, universities and governmental organizations. It is a debt instrument used for the purpose of raising fund of the corporations or governmental agencies. If selling price of the bond is equal to its face value, it is called as par on bond. If selling price of the bond is lesser than the face value, it is known as discount on bond. If selling price of the bond is greater than the face value, it is known as premium on bond.

Straight-line amortization bond

Straight line method of amortization is a process of amortizing premium on bond or discount on bond, which allocates the same amount of interest expense in each period of interest payment.

To Prepare: The journal entry to record the issuance of the bonds for Incorporation UF as on 1^st January 2016.

(2)

To determine

To Prepare: The journal entry to record interest revenue as on June 30, 2016.

(3)

To determine

To Prepare: The journal entry to record interest revenue on December 31, 2023.

Expert Solution & Answer

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Answer 5

Chapter 14, Problem 14.8E

(1)

To determine

Bonds

Bonds are a kind of interest bearing notes payable, usually issued by companies, universities and governmental organizations. It is a debt instrument used for the purpose of raising fund of the corporations or governmental agencies. If selling price of the bond is equal to its face value, it is called as par on bond. If selling price of the bond is lesser than the face value, it is known as discount on bond. If selling price of the bond is greater than the face value, it is known as premium on bond.

Straight-line amortization bond

Straight line method of amortization is a process of amortizing premium on bond or discount on bond, which allocates the same amount of interest expense in each period of interest payment.

To Prepare: The journal entry to record the issuance of the bonds for Incorporation UF as on 1^st January 2016.

(2)

To determine

To Prepare: The journal entry to record interest revenue as on June 30, 2016.

(3)

To determine

To Prepare: The journal entry to record interest revenue on December 31, 2023.

Answer 6

Chapter 14, Problem 14.8E

(1)

To determine

Bonds

Bonds are a kind of interest bearing notes payable, usually issued by companies, universities and governmental organizations. It is a debt instrument used for the purpose of raising fund of the corporations or governmental agencies. If selling price of the bond is equal to its face value, it is called as par on bond. If selling price of the bond is lesser than the face value, it is known as discount on bond. If selling price of the bond is greater than the face value, it is known as premium on bond.

Straight-line amortization bond

Straight line method of amortization is a process of amortizing premium on bond or discount on bond, which allocates the same amount of interest expense in each period of interest payment.

To Prepare: The journal entry to record the issuance of the bonds for Incorporation UF as on 1^st January 2016.

Answer 7

Chapter 14, Problem 14.8E

(1)

To determine

Bonds

Bonds are a kind of interest bearing notes payable, usually issued by companies, universities and governmental organizations. It is a debt instrument used for the purpose of raising fund of the corporations or governmental agencies. If selling price of the bond is equal to its face value, it is called as par on bond. If selling price of the bond is lesser than the face value, it is known as discount on bond. If selling price of the bond is greater than the face value, it is known as premium on bond.

Straight-line amortization bond

Straight line method of amortization is a process of amortizing premium on bond or discount on bond, which allocates the same amount of interest expense in each period of interest payment.

To Prepare: The journal entry to record the issuance of the bonds for Incorporation UF as on 1^st January 2016.

Answer 8

(2)

To determine

To Prepare: The journal entry to record interest revenue as on June 30, 2016.

Answer 9

(2)

To determine

To Prepare: The journal entry to record interest revenue as on June 30, 2016.

Answer 10

(3)

To determine

To Prepare: The journal entry to record interest revenue on December 31, 2023.

Answer 11

(3)

To determine

To Prepare: The journal entry to record interest revenue on December 31, 2023.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 14 - How is periodic interest determined for...Ch. 14 - As a general rule, how should long-term...Ch. 14 - How are bonds and notes the same? How do they...Ch. 14 - What information is contained in a bond indenture?...Ch. 14 - Prob. 14.5Q Ch. 14 - How is the price determined for a bond (or bond...Ch. 14 - A zero-coupon bond pays no interest. Explain.Ch. 14 - Prob. 14.8Q Ch. 14 - Compare the two commonly used methods of...Ch. 14 - Prob. 14.10Q

To Prepare: The journal entry to record interest revenue as on June 30, 2016.

To Prepare: The journal entry to record interest revenue on December 31, 2023.

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Chapter 14 Solutions