Bond Issue Cost: Bond issue costs are the costs that the company incurs at the time of issuing shares. It should be added to the discount or premium derived on the bond issue and should be amortized over the life span of the bond and the cost of issuance should be reduced from the cash received. The treatment of bond costs under IFRS, and the discount or premium on the bond.

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Answer 1

Question

Chapter 14, Problem 14.8P

a.

To determine

Concept Introduction:

Bond Issue Cost: Bond issue costs are the costs that the company incurs at the time of issuing shares. It should be added to the discount or premium derived on the bond issue and should be amortized over the life span of the bond and the cost of issuance should be reduced from the cash received.

The treatment of bond costs under IFRS, and the discount or premium on the bond.

b.

To determine

Concept Introduction:

Amortization: Amortization refers to the method of accounting which lower the booking amount or book value of any loan or any intangible asset over a time period.

To prepare: The amortization table for the bond issue using the effective rate of interest.

c.

To determine

Concept Introduction:

Journalizing: In accounts, for keeping records of all the business transactions properly, journalizing is being done for the transactions. Thus, it helps to track the transactions in chronological order as well as to maintain the records too.

To prepare: The journal for recording the required entries on the date of issue and on the first two interest dates in 2022 June 30 and December 31.

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On 10/6/2024, company A sells goods to Customer C for €20,000 with an agreed credit of two months. On 31/12/2024, in the context of investigating the collectability of its receivables, the company estimates that it will only collect €10,000 from customer C and forms a provision for doubtful debts for the remaining amount. Finally, on 30/3/2025, company A receives from customer C the amount of: a. €9,000 b. €11,000. You are requested to comment on the impact of the above collection cases a. 9000 b. 11,000 on the income statement for fiscal year 2025, justifying your position.

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Answer 2

Question

Chapter 14, Problem 14.8P

a.

To determine

Concept Introduction:

Bond Issue Cost: Bond issue costs are the costs that the company incurs at the time of issuing shares. It should be added to the discount or premium derived on the bond issue and should be amortized over the life span of the bond and the cost of issuance should be reduced from the cash received.

The treatment of bond costs under IFRS, and the discount or premium on the bond.

b.

To determine

Concept Introduction:

Amortization: Amortization refers to the method of accounting which lower the booking amount or book value of any loan or any intangible asset over a time period.

To prepare: The amortization table for the bond issue using the effective rate of interest.

c.

To determine

Concept Introduction:

Journalizing: In accounts, for keeping records of all the business transactions properly, journalizing is being done for the transactions. Thus, it helps to track the transactions in chronological order as well as to maintain the records too.

To prepare: The journal for recording the required entries on the date of issue and on the first two interest dates in 2022 June 30 and December 31.

Expert Solution & Answer

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Answer 3

Question

Chapter 14, Problem 14.8P

a.

To determine

Concept Introduction:

Bond Issue Cost: Bond issue costs are the costs that the company incurs at the time of issuing shares. It should be added to the discount or premium derived on the bond issue and should be amortized over the life span of the bond and the cost of issuance should be reduced from the cash received.

The treatment of bond costs under IFRS, and the discount or premium on the bond.

b.

To determine

Concept Introduction:

Amortization: Amortization refers to the method of accounting which lower the booking amount or book value of any loan or any intangible asset over a time period.

To prepare: The amortization table for the bond issue using the effective rate of interest.

c.

To determine

Concept Introduction:

Journalizing: In accounts, for keeping records of all the business transactions properly, journalizing is being done for the transactions. Thus, it helps to track the transactions in chronological order as well as to maintain the records too.

To prepare: The journal for recording the required entries on the date of issue and on the first two interest dates in 2022 June 30 and December 31.

Expert Solution & Answer

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Answer 4

Question

Chapter 14, Problem 14.8P

a.

To determine

Concept Introduction:

Bond Issue Cost: Bond issue costs are the costs that the company incurs at the time of issuing shares. It should be added to the discount or premium derived on the bond issue and should be amortized over the life span of the bond and the cost of issuance should be reduced from the cash received.

The treatment of bond costs under IFRS, and the discount or premium on the bond.

b.

To determine

Concept Introduction:

Amortization: Amortization refers to the method of accounting which lower the booking amount or book value of any loan or any intangible asset over a time period.

To prepare: The amortization table for the bond issue using the effective rate of interest.

c.

To determine

Concept Introduction:

Journalizing: In accounts, for keeping records of all the business transactions properly, journalizing is being done for the transactions. Thus, it helps to track the transactions in chronological order as well as to maintain the records too.

To prepare: The journal for recording the required entries on the date of issue and on the first two interest dates in 2022 June 30 and December 31.

Expert Solution & Answer

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Answer 5

Chapter 14, Problem 14.8P

a.

To determine

Concept Introduction:

Bond Issue Cost: Bond issue costs are the costs that the company incurs at the time of issuing shares. It should be added to the discount or premium derived on the bond issue and should be amortized over the life span of the bond and the cost of issuance should be reduced from the cash received.

The treatment of bond costs under IFRS, and the discount or premium on the bond.

b.

To determine

Concept Introduction:

Amortization: Amortization refers to the method of accounting which lower the booking amount or book value of any loan or any intangible asset over a time period.

To prepare: The amortization table for the bond issue using the effective rate of interest.

c.

To determine

Concept Introduction:

Journalizing: In accounts, for keeping records of all the business transactions properly, journalizing is being done for the transactions. Thus, it helps to track the transactions in chronological order as well as to maintain the records too.

To prepare: The journal for recording the required entries on the date of issue and on the first two interest dates in 2022 June 30 and December 31.

Answer 6

Chapter 14, Problem 14.8P

a.

To determine

Concept Introduction:

Bond Issue Cost: Bond issue costs are the costs that the company incurs at the time of issuing shares. It should be added to the discount or premium derived on the bond issue and should be amortized over the life span of the bond and the cost of issuance should be reduced from the cash received.

The treatment of bond costs under IFRS, and the discount or premium on the bond.

Answer 7

Chapter 14, Problem 14.8P

a.

To determine

Concept Introduction:

Bond Issue Cost: Bond issue costs are the costs that the company incurs at the time of issuing shares. It should be added to the discount or premium derived on the bond issue and should be amortized over the life span of the bond and the cost of issuance should be reduced from the cash received.

The treatment of bond costs under IFRS, and the discount or premium on the bond.

Answer 8

b.

To determine

Concept Introduction:

Amortization: Amortization refers to the method of accounting which lower the booking amount or book value of any loan or any intangible asset over a time period.

To prepare: The amortization table for the bond issue using the effective rate of interest.

Answer 9

b.

To determine

Concept Introduction:

Amortization: Amortization refers to the method of accounting which lower the booking amount or book value of any loan or any intangible asset over a time period.

To prepare: The amortization table for the bond issue using the effective rate of interest.

Answer 10

c.

To determine

Concept Introduction:

Journalizing: In accounts, for keeping records of all the business transactions properly, journalizing is being done for the transactions. Thus, it helps to track the transactions in chronological order as well as to maintain the records too.

To prepare: The journal for recording the required entries on the date of issue and on the first two interest dates in 2022 June 30 and December 31.

Answer 11

c.

To determine

Concept Introduction:

Journalizing: In accounts, for keeping records of all the business transactions properly, journalizing is being done for the transactions. Thus, it helps to track the transactions in chronological order as well as to maintain the records too.

To prepare: The journal for recording the required entries on the date of issue and on the first two interest dates in 2022 June 30 and December 31.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 14 - What conditions or terms does a note payable...Ch. 14 - If the market rate of interest exceeds the face or...Ch. 14 - What is included in bond issue costs and how...Ch. 14 - Prob. 14.4Q Ch. 14 - When a bond is issued at a discount, will its...Ch. 14 - Prob. 14.6Q Ch. 14 - Prob. 14.7Q Ch. 14 - Under IFRS, how do firms account for convertible...Ch. 14 - Prob. 14.9Q Ch. 14 - Can companies reclassify short-term debt expected...

Concept Introduction: Amortization: Amortization refers to the method of accounting which lower the booking amount or book value of any loan or any intangible asset over a time period. To prepare: The amortization table for the bond issue using the effective rate of interest.

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Chapter 14 Solutions

Concept Introduction:

Amortization: Amortization refers to the method of accounting which lower the booking amount or book value of any loan or any intangible asset over a time period.

To prepare: The amortization table for the bond issue using the effective rate of interest.