Issue of bond at par: When the coupon rate or contract rate of a bond is equal to the market interest rate, the bond is being issued at par value. If a bond is issued at par, the selling price of the bond will be equal to face value of the bond. To determine : 1. Prepare journal entry for the issuance of bonds for cash. 2. Prepare journal entry for the first semiannual interest payment on June 30, 2017. 3. Prepare journal entry for the second semiannual interest payment on December 31, 2017. 4. Record the entry for the maturity of the bonds on December 31, 2020.

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Answer 1

Question

Chapter 14, Problem 16E

To determine

Issue of bond at par:

When the coupon rate or contract rate of a bond is equal to the market interest rate, the bond is being issued at par value. If a bond is issued at par, the selling price of the bond will be equal to face value of the bond.

To determine:

1. Prepare journal entry for the issuance of bonds for cash.

2. Prepare journal entry for the first semiannual interest payment on June 30, 2017.

3. Prepare journal entry for the second semiannual interest payment on December 31, 2017.

4. Record the entry for the maturity of the bonds on December 31, 2020.

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Answer 2

Question

Chapter 14, Problem 16E

To determine

Issue of bond at par:

When the coupon rate or contract rate of a bond is equal to the market interest rate, the bond is being issued at par value. If a bond is issued at par, the selling price of the bond will be equal to face value of the bond.

To determine:

1. Prepare journal entry for the issuance of bonds for cash.

2. Prepare journal entry for the first semiannual interest payment on June 30, 2017.

3. Prepare journal entry for the second semiannual interest payment on December 31, 2017.

4. Record the entry for the maturity of the bonds on December 31, 2020.

Expert Solution & Answer

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Answer 3

Question

Chapter 14, Problem 16E

To determine

Issue of bond at par:

When the coupon rate or contract rate of a bond is equal to the market interest rate, the bond is being issued at par value. If a bond is issued at par, the selling price of the bond will be equal to face value of the bond.

To determine:

1. Prepare journal entry for the issuance of bonds for cash.

2. Prepare journal entry for the first semiannual interest payment on June 30, 2017.

3. Prepare journal entry for the second semiannual interest payment on December 31, 2017.

4. Record the entry for the maturity of the bonds on December 31, 2020.

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Answer 4

Question

Chapter 14, Problem 16E

To determine

Issue of bond at par:

When the coupon rate or contract rate of a bond is equal to the market interest rate, the bond is being issued at par value. If a bond is issued at par, the selling price of the bond will be equal to face value of the bond.

To determine:

1. Prepare journal entry for the issuance of bonds for cash.

2. Prepare journal entry for the first semiannual interest payment on June 30, 2017.

3. Prepare journal entry for the second semiannual interest payment on December 31, 2017.

4. Record the entry for the maturity of the bonds on December 31, 2020.

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Answer 5

Chapter 14, Problem 16E

To determine

Issue of bond at par:

When the coupon rate or contract rate of a bond is equal to the market interest rate, the bond is being issued at par value. If a bond is issued at par, the selling price of the bond will be equal to face value of the bond.

To determine:

1. Prepare journal entry for the issuance of bonds for cash.

2. Prepare journal entry for the first semiannual interest payment on June 30, 2017.

3. Prepare journal entry for the second semiannual interest payment on December 31, 2017.

4. Record the entry for the maturity of the bonds on December 31, 2020.

Answer 6

Chapter 14, Problem 16E

To determine

Issue of bond at par:

When the coupon rate or contract rate of a bond is equal to the market interest rate, the bond is being issued at par value. If a bond is issued at par, the selling price of the bond will be equal to face value of the bond.

To determine:

1. Prepare journal entry for the issuance of bonds for cash.

2. Prepare journal entry for the first semiannual interest payment on June 30, 2017.

3. Prepare journal entry for the second semiannual interest payment on December 31, 2017.

4. Record the entry for the maturity of the bonds on December 31, 2020.

Answer 7

Chapter 14, Problem 16E

To determine

Issue of bond at par:

When the coupon rate or contract rate of a bond is equal to the market interest rate, the bond is being issued at par value. If a bond is issued at par, the selling price of the bond will be equal to face value of the bond.

To determine:

1. Prepare journal entry for the issuance of bonds for cash.

2. Prepare journal entry for the first semiannual interest payment on June 30, 2017.

3. Prepare journal entry for the second semiannual interest payment on December 31, 2017.

4. Record the entry for the maturity of the bonds on December 31, 2020.

Answer 8

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Answer 11

Ch. 14 - Prob. 1DQ Ch. 14 - Prob. 2DQ Ch. 14 - Prob. 3DQ Ch. 14 - Prob. 4DQ Ch. 14 - Prob. 5DQ Ch. 14 - Prob. 6DQ Ch. 14 - Prob. 7DQ Ch. 14 - Prob. 8DQ Ch. 14 - Prob. 9DQ Ch. 14 - Prob. 10DQ

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