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. To Prepare : Journal entry to record issuance of the bonds for cash at face amount.

Question

Can you explain the correct approach to solve this general accounting question?

Answer 1

Question

Chapter 14, Problem 14.8EX

a)

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.

To Prepare: Journal entry to record issuance of the bonds for cash at face amount.

b)

To determine

To Prepare: Journal entry to record the payment of interest on the bonds on September 1, 2016.

c)

To determine

To Journalize: The redemption of the bonds.

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Answer 2

Question

Chapter 14, Problem 14.8EX

a)

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.

To Prepare: Journal entry to record issuance of the bonds for cash at face amount.

b)

To determine

To Prepare: Journal entry to record the payment of interest on the bonds on September 1, 2016.

c)

To determine

To Journalize: The redemption of the bonds.

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Answer 3

Question

Chapter 14, Problem 14.8EX

a)

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.

To Prepare: Journal entry to record issuance of the bonds for cash at face amount.

b)

To determine

To Prepare: Journal entry to record the payment of interest on the bonds on September 1, 2016.

c)

To determine

To Journalize: The redemption of the bonds.

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Answer 4

Question

Chapter 14, Problem 14.8EX

a)

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.

To Prepare: Journal entry to record issuance of the bonds for cash at face amount.

b)

To determine

To Prepare: Journal entry to record the payment of interest on the bonds on September 1, 2016.

c)

To determine

To Journalize: The redemption of the bonds.

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Answer 5

Chapter 14, Problem 14.8EX

a)

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.

To Prepare: Journal entry to record issuance of the bonds for cash at face amount.

b)

To determine

To Prepare: Journal entry to record the payment of interest on the bonds on September 1, 2016.

c)

To determine

To Journalize: The redemption of the bonds.

Answer 6

Chapter 14, Problem 14.8EX

a)

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.

To Prepare: Journal entry to record issuance of the bonds for cash at face amount.

Answer 7

Chapter 14, Problem 14.8EX

a)

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.

To Prepare: Journal entry to record issuance of the bonds for cash at face amount.

Answer 8

b)

To determine

To Prepare: Journal entry to record the payment of interest on the bonds on September 1, 2016.

Answer 9

b)

To determine

To Prepare: Journal entry to record the payment of interest on the bonds on September 1, 2016.

Answer 10

c)

To determine

To Journalize: The redemption of the bonds.

Answer 11

c)

To determine

To Journalize: The redemption of the bonds.

Answer 12

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Answer 13

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Answer 23

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.

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To Prepare: Journal entry to record the payment of interest on the bonds on September 1, 2016.

To Journalize: The redemption of the bonds.

Chapter 14 Solutions