Amortization: Amortization refers to the method of accounting which lower down the book amount or book value of any loan or any intangible asset over the time period. Bond: Bond refers to a debt instrument or a debt security which has longer period for maturity with some component of interest or return to be received on the amount paid on bond. To prepare: The amortization table for the bond issue assuming that the company uses the effective interest rate method of amortization.

Question

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Answer 1

Question

Chapter 14, Problem 14.9P

a.

To determine

Concept Introduction:

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

Bond: Bond refers to a debt instrument or a debt security which has longer period for maturity with some component of interest or return to be received on the amount paid on bond.

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

b.

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 issuing bond.

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 first interest payment.

d.

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 conversion of bond.

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Answer 2

Question

Chapter 14, Problem 14.9P

a.

To determine

Concept Introduction:

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

Bond: Bond refers to a debt instrument or a debt security which has longer period for maturity with some component of interest or return to be received on the amount paid on bond.

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

b.

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 issuing bond.

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 first interest payment.

d.

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 conversion of bond.

Expert Solution & Answer

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Answer 3

Question

Chapter 14, Problem 14.9P

a.

To determine

Concept Introduction:

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

Bond: Bond refers to a debt instrument or a debt security which has longer period for maturity with some component of interest or return to be received on the amount paid on bond.

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

b.

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 issuing bond.

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 first interest payment.

d.

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 conversion of bond.

Expert Solution & Answer

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Answer 4

Question

Chapter 14, Problem 14.9P

a.

To determine

Concept Introduction:

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

Bond: Bond refers to a debt instrument or a debt security which has longer period for maturity with some component of interest or return to be received on the amount paid on bond.

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

b.

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 issuing bond.

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 first interest payment.

d.

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 conversion of bond.

Expert Solution & Answer

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Answer 5

Chapter 14, Problem 14.9P

a.

To determine

Concept Introduction:

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

Bond: Bond refers to a debt instrument or a debt security which has longer period for maturity with some component of interest or return to be received on the amount paid on bond.

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

b.

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 issuing bond.

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 first interest payment.

d.

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 conversion of bond.

Answer 6

Chapter 14, Problem 14.9P

a.

To determine

Concept Introduction:

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

Bond: Bond refers to a debt instrument or a debt security which has longer period for maturity with some component of interest or return to be received on the amount paid on bond.

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

Answer 7

Chapter 14, Problem 14.9P

a.

To determine

Concept Introduction:

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

Bond: Bond refers to a debt instrument or a debt security which has longer period for maturity with some component of interest or return to be received on the amount paid on bond.

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

Answer 8

b.

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 issuing bond.

Answer 9

b.

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 issuing bond.

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 first interest payment.

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 first interest payment.

Answer 12

d.

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 conversion of bond.

Answer 13

d.

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 conversion of bond.

Answer 14

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Answer 15

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Answer 16

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Answer 17

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...

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Chapter 14 Solutions