
Bonds Payable:
The Bonds payable is the long term liability of the issuer company and contains formal commitment to pay the interest on regular intervals and principal amount to be repaid at the time of maturity which will be fixed at the time of issuance itself.
The Bonds payable is the long term liability issued by the company to finance its expansion or to finance the new project. The bonds may be issued at par or at discount or at premium depending upon the stated rate of interest on the bonds and market rate of interest persistent in the market. Each Bond is having a face value at which it is treated as liability to be paid in future. However, the carrying amount of Bonds payable in the books may differ based on bonds issued at par or at discount or at premium at the time of issue. The Carrying amount of Bonds payable to be shown in the books has been explained as follows in different situation:
Requirement1:
The
Requirement2:
The Journal entry for the issuance of bonds and payment of semi-annual interest.
Requirement3:
The Journal entry for the issuance of bonds and payment of semi-annual interest.
Requirement4:
The price which results in expensive in terms of interest.

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Chapter 14 Solutions
ACCOUNTING PRINCIPLES 222 5/16 >C<
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- During 20x2 Creswell Corporation sold $5,500 of inventory on credit. The company's beginning and ending accounts receivable balances were $30,000 and $32,500, respectively. How much cash did Creswell Corporation collect on the account? If the ending accounts receivable had been $27,000, how much cash would Creswell Corporation have collected?arrow_forwardfinancial accountingarrow_forwardWhat is the amount of total assets?arrow_forward
- Question: Panther Apparel sold manufacturing equipment for $30,000. Panther originally purchased the equipment for $95,000, and depreciation through the date of sale totaled $78,500. What was the gain or loss on the sale of the equipment?arrow_forwardHelparrow_forwardSubject: general accountingarrow_forward
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