The amortization table for the bond issue assuming that the company uses the effective interest rate method of amortization. Given information: Company issued bonds worth $1,000,000 at Par. Term period for conversion is 6 years Interest is payable semi-annually each January 1 and July 1. Market rate of interest is 10%. Bond sold for $1,704,287.

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Answer 1

Question

Chapter 14, Problem 14.9P

a.

To determine

To prepare: The amortization table for the bond issue assuming that the company uses the effective interest rate method of amortization.

Given information:

Company issued bonds worth $1,000,000 at Par.

Term period for conversion is 6 years

Interest is payable semi-annually each January 1 and July 1.

Market rate of interest is 10%.

Bond sold for $1,704,287.

b.

To determine

To prepare: The journal for recording issuing bond.

c.

To determine

To prepare: The journal for recording first interest payment.

d.

To determine

To prepare: The journal for recording conversion of bond.

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Answer 2

Question

Chapter 14, Problem 14.9P

a.

To determine

To prepare: The amortization table for the bond issue assuming that the company uses the effective interest rate method of amortization.

Given information:

Company issued bonds worth $1,000,000 at Par.

Term period for conversion is 6 years

Interest is payable semi-annually each January 1 and July 1.

Market rate of interest is 10%.

Bond sold for $1,704,287.

b.

To determine

To prepare: The journal for recording issuing bond.

c.

To determine

To prepare: The journal for recording first interest payment.

d.

To determine

To prepare: The journal for recording conversion of bond.

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Answer 3

Question

Chapter 14, Problem 14.9P

a.

To determine

To prepare: The amortization table for the bond issue assuming that the company uses the effective interest rate method of amortization.

Given information:

Company issued bonds worth $1,000,000 at Par.

Term period for conversion is 6 years

Interest is payable semi-annually each January 1 and July 1.

Market rate of interest is 10%.

Bond sold for $1,704,287.

b.

To determine

To prepare: The journal for recording issuing bond.

c.

To determine

To prepare: The journal for recording first interest payment.

d.

To determine

To prepare: The journal for recording conversion of bond.

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Answer 4

Question

Chapter 14, Problem 14.9P

a.

To determine

To prepare: The amortization table for the bond issue assuming that the company uses the effective interest rate method of amortization.

Given information:

Company issued bonds worth $1,000,000 at Par.

Term period for conversion is 6 years

Interest is payable semi-annually each January 1 and July 1.

Market rate of interest is 10%.

Bond sold for $1,704,287.

b.

To determine

To prepare: The journal for recording issuing bond.

c.

To determine

To prepare: The journal for recording first interest payment.

d.

To determine

To prepare: The journal for recording conversion of bond.

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Answer 5

Chapter 14, Problem 14.9P

a.

To determine

To prepare: The amortization table for the bond issue assuming that the company uses the effective interest rate method of amortization.

Given information:

Company issued bonds worth $1,000,000 at Par.

Term period for conversion is 6 years

Interest is payable semi-annually each January 1 and July 1.

Market rate of interest is 10%.

Bond sold for $1,704,287.

b.

To determine

To prepare: The journal for recording issuing bond.

c.

To determine

To prepare: The journal for recording first interest payment.

d.

To determine

To prepare: The journal for recording conversion of bond.

Answer 6

Chapter 14, Problem 14.9P

a.

To determine

To prepare: The amortization table for the bond issue assuming that the company uses the effective interest rate method of amortization.

Given information:

Company issued bonds worth $1,000,000 at Par.

Term period for conversion is 6 years

Interest is payable semi-annually each January 1 and July 1.

Market rate of interest is 10%.

Bond sold for $1,704,287.

Answer 7

Chapter 14, Problem 14.9P

a.

To determine

To prepare: The amortization table for the bond issue assuming that the company uses the effective interest rate method of amortization.

Given information:

Company issued bonds worth $1,000,000 at Par.

Term period for conversion is 6 years

Interest is payable semi-annually each January 1 and July 1.

Market rate of interest is 10%.

Bond sold for $1,704,287.

Answer 8

b.

To determine

To prepare: The journal for recording issuing bond.

Answer 9

b.

To determine

To prepare: The journal for recording issuing bond.

Answer 10

c.

To determine

To prepare: The journal for recording first interest payment.

Answer 11

c.

To determine

To prepare: The journal for recording first interest payment.

Answer 12

d.

To determine

To prepare: The journal for recording conversion of bond.

Answer 13

d.

To determine

To prepare: The journal for recording conversion of bond.

Answer 14

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Answer 15

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Answer 16

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Answer 17

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To prepare: The journal for recording issuing bond.

To prepare: The journal for recording first interest payment.

To prepare: The journal for recording conversion of bond.

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Chapter 14 Solutions