The journal entry to record the bond issuance. Given information: Number of bonds issued is 75 at 1,000 par values. Number of shares offered on conversion are 25. Bond issue cost is $480. Term of bond is 12 years. Coupon rate of bond is 12%.

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Answer 1

Question

Chapter 14, Problem 14.8P

a.

To determine

To prepare: The journal entry to record the bond issuance.

Given information:

Number of bonds issued is 75 at 1,000 par values.

Number of shares offered on conversion are 25.

Bond issue cost is $480.

Term of bond is 12 years.

Coupon rate of bond is 12%.

b.

To determine

To prepare: The journal entry to record interest payment.

Given information:

Number of bonds issued is 75 at 1,000 par values.

Number of shares offered on conversion are 25.

Bond issue cost is $480.

Term of bond is 12 years.

Coupon rate of bond is 12%.

c.

To determine

To prepare: The journal entry to record amortization of issue cost.

Given information:

Number of bonds issued is 75 at 1,000 par values.

Number of shares offered on conversion are 25.

Bond issue cost is $480.

Term of bond is 12 years.

Coupon rate of bond is 12%.

d.

To determine

To prepare: The journal entry to record conversion.

Given information:

Number of bonds issued is 75 at 1,000 par values.

Number of shares offered on conversion are 25.

Bond issue cost is $480.

Term of bond is 12 years.

Coupon rate of bond is 12%.

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Answer 2

Question

Chapter 14, Problem 14.8P

a.

To determine

To prepare: The journal entry to record the bond issuance.

Given information:

Number of bonds issued is 75 at 1,000 par values.

Number of shares offered on conversion are 25.

Bond issue cost is $480.

Term of bond is 12 years.

Coupon rate of bond is 12%.

b.

To determine

To prepare: The journal entry to record interest payment.

Given information:

Number of bonds issued is 75 at 1,000 par values.

Number of shares offered on conversion are 25.

Bond issue cost is $480.

Term of bond is 12 years.

Coupon rate of bond is 12%.

c.

To determine

To prepare: The journal entry to record amortization of issue cost.

Given information:

Number of bonds issued is 75 at 1,000 par values.

Number of shares offered on conversion are 25.

Bond issue cost is $480.

Term of bond is 12 years.

Coupon rate of bond is 12%.

d.

To determine

To prepare: The journal entry to record conversion.

Given information:

Number of bonds issued is 75 at 1,000 par values.

Number of shares offered on conversion are 25.

Bond issue cost is $480.

Term of bond is 12 years.

Coupon rate of bond is 12%.

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Answer 3

Question

Chapter 14, Problem 14.8P

a.

To determine

To prepare: The journal entry to record the bond issuance.

Given information:

Number of bonds issued is 75 at 1,000 par values.

Number of shares offered on conversion are 25.

Bond issue cost is $480.

Term of bond is 12 years.

Coupon rate of bond is 12%.

b.

To determine

To prepare: The journal entry to record interest payment.

Given information:

Number of bonds issued is 75 at 1,000 par values.

Number of shares offered on conversion are 25.

Bond issue cost is $480.

Term of bond is 12 years.

Coupon rate of bond is 12%.

c.

To determine

To prepare: The journal entry to record amortization of issue cost.

Given information:

Number of bonds issued is 75 at 1,000 par values.

Number of shares offered on conversion are 25.

Bond issue cost is $480.

Term of bond is 12 years.

Coupon rate of bond is 12%.

d.

To determine

To prepare: The journal entry to record conversion.

Given information:

Number of bonds issued is 75 at 1,000 par values.

Number of shares offered on conversion are 25.

Bond issue cost is $480.

Term of bond is 12 years.

Coupon rate of bond is 12%.

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Answer 4

Question

Chapter 14, Problem 14.8P

a.

To determine

To prepare: The journal entry to record the bond issuance.

Given information:

Number of bonds issued is 75 at 1,000 par values.

Number of shares offered on conversion are 25.

Bond issue cost is $480.

Term of bond is 12 years.

Coupon rate of bond is 12%.

b.

To determine

To prepare: The journal entry to record interest payment.

Given information:

Number of bonds issued is 75 at 1,000 par values.

Number of shares offered on conversion are 25.

Bond issue cost is $480.

Term of bond is 12 years.

Coupon rate of bond is 12%.

c.

To determine

To prepare: The journal entry to record amortization of issue cost.

Given information:

Number of bonds issued is 75 at 1,000 par values.

Number of shares offered on conversion are 25.

Bond issue cost is $480.

Term of bond is 12 years.

Coupon rate of bond is 12%.

d.

To determine

To prepare: The journal entry to record conversion.

Given information:

Number of bonds issued is 75 at 1,000 par values.

Number of shares offered on conversion are 25.

Bond issue cost is $480.

Term of bond is 12 years.

Coupon rate of bond is 12%.

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Answer 5

Chapter 14, Problem 14.8P

a.

To determine

To prepare: The journal entry to record the bond issuance.

Given information:

Number of bonds issued is 75 at 1,000 par values.

Number of shares offered on conversion are 25.

Bond issue cost is $480.

Term of bond is 12 years.

Coupon rate of bond is 12%.

b.

To determine

To prepare: The journal entry to record interest payment.

Given information:

Number of bonds issued is 75 at 1,000 par values.

Number of shares offered on conversion are 25.

Bond issue cost is $480.

Term of bond is 12 years.

Coupon rate of bond is 12%.

c.

To determine

To prepare: The journal entry to record amortization of issue cost.

Given information:

Number of bonds issued is 75 at 1,000 par values.

Number of shares offered on conversion are 25.

Bond issue cost is $480.

Term of bond is 12 years.

Coupon rate of bond is 12%.

d.

To determine

To prepare: The journal entry to record conversion.

Given information:

Number of bonds issued is 75 at 1,000 par values.

Number of shares offered on conversion are 25.

Bond issue cost is $480.

Term of bond is 12 years.

Coupon rate of bond is 12%.

Answer 6

Chapter 14, Problem 14.8P

a.

To determine

To prepare: The journal entry to record the bond issuance.

Given information:

Number of bonds issued is 75 at 1,000 par values.

Number of shares offered on conversion are 25.

Bond issue cost is $480.

Term of bond is 12 years.

Coupon rate of bond is 12%.

Answer 7

Chapter 14, Problem 14.8P

a.

To determine

To prepare: The journal entry to record the bond issuance.

Given information:

Number of bonds issued is 75 at 1,000 par values.

Number of shares offered on conversion are 25.

Bond issue cost is $480.

Term of bond is 12 years.

Coupon rate of bond is 12%.

Answer 8

b.

To determine

To prepare: The journal entry to record interest payment.

Given information:

Number of bonds issued is 75 at 1,000 par values.

Number of shares offered on conversion are 25.

Bond issue cost is $480.

Term of bond is 12 years.

Coupon rate of bond is 12%.

Answer 9

b.

To determine

To prepare: The journal entry to record interest payment.

Given information:

Number of bonds issued is 75 at 1,000 par values.

Number of shares offered on conversion are 25.

Bond issue cost is $480.

Term of bond is 12 years.

Coupon rate of bond is 12%.

Answer 10

c.

To determine

To prepare: The journal entry to record amortization of issue cost.

Given information:

Number of bonds issued is 75 at 1,000 par values.

Number of shares offered on conversion are 25.

Bond issue cost is $480.

Term of bond is 12 years.

Coupon rate of bond is 12%.

Answer 11

c.

To determine

To prepare: The journal entry to record amortization of issue cost.

Given information:

Number of bonds issued is 75 at 1,000 par values.

Number of shares offered on conversion are 25.

Bond issue cost is $480.

Term of bond is 12 years.

Coupon rate of bond is 12%.

Answer 12

d.

To determine

To prepare: The journal entry to record conversion.

Given information:

Number of bonds issued is 75 at 1,000 par values.

Number of shares offered on conversion are 25.

Bond issue cost is $480.

Term of bond is 12 years.

Coupon rate of bond is 12%.

Answer 13

d.

To determine

To prepare: The journal entry to record conversion.

Given information:

Number of bonds issued is 75 at 1,000 par values.

Number of shares offered on conversion are 25.

Bond issue cost is $480.

Term of bond is 12 years.

Coupon rate of bond is 12%.

Answer 14

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Answer 15

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Answer 16

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Answer 17

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The journal entry to record the bond issuance. Given information: Number of bonds issued is 75 at 1,000 par values. Number of shares offered on conversion are 25. Bond issue cost is $480. Term of bond is 12 years. Coupon rate of bond is 12%.

To prepare: The journal entry to record the bond issuance. Given information: Number of bonds issued is 75 at 1,000 par values. Number of shares offered on conversion are 25. Bond issue cost is $480. Term of bond is 12 years. Coupon rate of bond is 12%.

To prepare: The journal entry to record interest payment. Given information: Number of bonds issued is 75 at 1,000 par values. Number of shares offered on conversion are 25. Bond issue cost is $480. Term of bond is 12 years. Coupon rate of bond is 12%.

To prepare: The journal entry to record amortization of issue cost. Given information: Number of bonds issued is 75 at 1,000 par values. Number of shares offered on conversion are 25. Bond issue cost is $480. Term of bond is 12 years. Coupon rate of bond is 12%.

To prepare: The journal entry to record conversion. Given information: Number of bonds issued is 75 at 1,000 par values. Number of shares offered on conversion are 25. Bond issue cost is $480. Term of bond is 12 years. Coupon rate of bond is 12%.

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Chapter 14 Solutions

To prepare: The journal entry to record the bond issuance.

Given information:

Number of bonds issued is 75 at 1,000 par values.

Number of shares offered on conversion are 25.

Bond issue cost is $480.

Term of bond is 12 years.

Coupon rate of bond is 12%.

To prepare: The journal entry to record interest payment.

Given information:

Number of bonds issued is 75 at 1,000 par values.

Number of shares offered on conversion are 25.

Bond issue cost is $480.

Term of bond is 12 years.

Coupon rate of bond is 12%.

To prepare: The journal entry to record amortization of issue cost.

Given information:

Number of bonds issued is 75 at 1,000 par values.

Number of shares offered on conversion are 25.

Bond issue cost is $480.

Term of bond is 12 years.

Coupon rate of bond is 12%.

To prepare: The journal entry to record conversion.

Given information:

Number of bonds issued is 75 at 1,000 par values.

Number of shares offered on conversion are 25.

Bond issue cost is $480.

Term of bond is 12 years.

Coupon rate of bond is 12%.