Loans and borrowings: The debt instrument which is used by companies to meet the necessary requirements of the business operations and investment is called loans and borrowings. In other words, it is method to borrow money for specified period of time with certain rate of interest for business purpose. To determine : 1. Prepare journal entry to record its cash proceeds from issuances of its loans and borrowings for 2015. 2. Prepare journal entry to record its cash repayments of its loans and borrowings for 2015. 3. Computation of discount or premium on its loans and borrowings as of December 31, 2015. 4. Determine whether the contract rate on these loans and borrowings are higher or lower than the market rate at the time of issuance.

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Answer 1

Question

Chapter 14, Problem 20E

To determine

Loans and borrowings:

The debt instrument which is used by companies to meet the necessary requirements of the business operations and investment is called loans and borrowings. In other words, it is method to borrow money for specified period of time with certain rate of interest for business purpose.

To determine:

1. Prepare journal entry to record its cash proceeds from issuances of its loans and borrowings for 2015.

2. Prepare journal entry to record its cash repayments of its loans and borrowings for 2015.

3. Computation of discount or premium on its loans and borrowings as of December 31, 2015.

4. Determine whether the contract rate on these loans and borrowings are higher or lower than the market rate at the time of issuance.

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Answer 2

Question

Chapter 14, Problem 20E

To determine

Loans and borrowings:

The debt instrument which is used by companies to meet the necessary requirements of the business operations and investment is called loans and borrowings. In other words, it is method to borrow money for specified period of time with certain rate of interest for business purpose.

To determine:

1. Prepare journal entry to record its cash proceeds from issuances of its loans and borrowings for 2015.

2. Prepare journal entry to record its cash repayments of its loans and borrowings for 2015.

3. Computation of discount or premium on its loans and borrowings as of December 31, 2015.

4. Determine whether the contract rate on these loans and borrowings are higher or lower than the market rate at the time of issuance.

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Answer 3

Question

Chapter 14, Problem 20E

To determine

Loans and borrowings:

The debt instrument which is used by companies to meet the necessary requirements of the business operations and investment is called loans and borrowings. In other words, it is method to borrow money for specified period of time with certain rate of interest for business purpose.

To determine:

1. Prepare journal entry to record its cash proceeds from issuances of its loans and borrowings for 2015.

2. Prepare journal entry to record its cash repayments of its loans and borrowings for 2015.

3. Computation of discount or premium on its loans and borrowings as of December 31, 2015.

4. Determine whether the contract rate on these loans and borrowings are higher or lower than the market rate at the time of issuance.

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Answer 4

Question

Chapter 14, Problem 20E

To determine

Loans and borrowings:

The debt instrument which is used by companies to meet the necessary requirements of the business operations and investment is called loans and borrowings. In other words, it is method to borrow money for specified period of time with certain rate of interest for business purpose.

To determine:

1. Prepare journal entry to record its cash proceeds from issuances of its loans and borrowings for 2015.

2. Prepare journal entry to record its cash repayments of its loans and borrowings for 2015.

3. Computation of discount or premium on its loans and borrowings as of December 31, 2015.

4. Determine whether the contract rate on these loans and borrowings are higher or lower than the market rate at the time of issuance.

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Answer 5

Chapter 14, Problem 20E

To determine

Loans and borrowings:

The debt instrument which is used by companies to meet the necessary requirements of the business operations and investment is called loans and borrowings. In other words, it is method to borrow money for specified period of time with certain rate of interest for business purpose.

To determine:

1. Prepare journal entry to record its cash proceeds from issuances of its loans and borrowings for 2015.

2. Prepare journal entry to record its cash repayments of its loans and borrowings for 2015.

3. Computation of discount or premium on its loans and borrowings as of December 31, 2015.

4. Determine whether the contract rate on these loans and borrowings are higher or lower than the market rate at the time of issuance.

Answer 6

Chapter 14, Problem 20E

To determine

Loans and borrowings:

The debt instrument which is used by companies to meet the necessary requirements of the business operations and investment is called loans and borrowings. In other words, it is method to borrow money for specified period of time with certain rate of interest for business purpose.

To determine:

1. Prepare journal entry to record its cash proceeds from issuances of its loans and borrowings for 2015.

2. Prepare journal entry to record its cash repayments of its loans and borrowings for 2015.

3. Computation of discount or premium on its loans and borrowings as of December 31, 2015.

4. Determine whether the contract rate on these loans and borrowings are higher or lower than the market rate at the time of issuance.

Answer 7

Chapter 14, Problem 20E

To determine

Loans and borrowings:

The debt instrument which is used by companies to meet the necessary requirements of the business operations and investment is called loans and borrowings. In other words, it is method to borrow money for specified period of time with certain rate of interest for business purpose.

To determine:

1. Prepare journal entry to record its cash proceeds from issuances of its loans and borrowings for 2015.

2. Prepare journal entry to record its cash repayments of its loans and borrowings for 2015.

3. Computation of discount or premium on its loans and borrowings as of December 31, 2015.

4. Determine whether the contract rate on these loans and borrowings are higher or lower than the market rate at the time of issuance.

Answer 8

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Answer 9

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Answer 10

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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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