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. Under Effective Interest method, the difference between the cash interest paid and interest expense of the period is computed. This difference is considered as discount or premium amortized for the period depending upon the amount of both the interest. Requirement1: The Journal entry for the issuance of bonds and payment of semi-annual interest.

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Answer 1

Question

Chapter 14, Problem E14A.30E

To determine

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.

Under Effective Interest method, the difference between the cash interest paid and interest expense of the period is computed. This difference is considered as discount or premium amortized for the period depending upon the amount of both the interest.

Requirement1:

The Journal entry for the issuance of bonds and payment of semi-annual interest.

To determine

Requirement2:

The Journal entry for the issuance of bonds and payment of semi-annual interest.

To determine

Requirement3:

The Journal entry for the issuance of bonds and payment of semi-annual interest.

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Recently, Abercrombie & Fitch has been implementing a turnaround strategy since its sales had been falling for the past few years (11% decrease in 2014, 8% in 2015, and just 3% in 2016.) One part of Abercrombie's new strategy has been to abandon its logo-adorned merchandise, replacing it with a subtler look. Abercrombie wrote down $20.6 million of inventory, including logo-adorned merchandise, during the year ending January 30, 2016. Some of this inventory dated back to late 2013. The write-down was net of the amount it would be able to recover selling the inventory at a discount. The write-down is significant; Abercrombie's reported net income after this write-down was $35.6 million. Interestingly, Abercrombie excluded the inventory write-down from its non-GAAP income measures presented to investors; GAAP earnings were also included in the same report. Question: What impact would the write-down of inventory have had on Abercrombie's assets, Liabilities, and Equity?

Answer 2

Question

Chapter 14, Problem E14A.30E

To determine

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.

Under Effective Interest method, the difference between the cash interest paid and interest expense of the period is computed. This difference is considered as discount or premium amortized for the period depending upon the amount of both the interest.

Requirement1:

The Journal entry for the issuance of bonds and payment of semi-annual interest.

To determine

Requirement2:

The Journal entry for the issuance of bonds and payment of semi-annual interest.

To determine

Requirement3:

The Journal entry for the issuance of bonds and payment of semi-annual interest.

Expert Solution & Answer

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Answer 3

Question

Chapter 14, Problem E14A.30E

To determine

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.

Under Effective Interest method, the difference between the cash interest paid and interest expense of the period is computed. This difference is considered as discount or premium amortized for the period depending upon the amount of both the interest.

Requirement1:

The Journal entry for the issuance of bonds and payment of semi-annual interest.

To determine

Requirement2:

The Journal entry for the issuance of bonds and payment of semi-annual interest.

To determine

Requirement3:

The Journal entry for the issuance of bonds and payment of semi-annual interest.

Expert Solution & Answer

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Answer 4

Question

Chapter 14, Problem E14A.30E

To determine

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.

Under Effective Interest method, the difference between the cash interest paid and interest expense of the period is computed. This difference is considered as discount or premium amortized for the period depending upon the amount of both the interest.

Requirement1:

The Journal entry for the issuance of bonds and payment of semi-annual interest.

To determine

Requirement2:

The Journal entry for the issuance of bonds and payment of semi-annual interest.

To determine

Requirement3:

The Journal entry for the issuance of bonds and payment of semi-annual interest.

Expert Solution & Answer

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Answer 5

Chapter 14, Problem E14A.30E

To determine

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.

Under Effective Interest method, the difference between the cash interest paid and interest expense of the period is computed. This difference is considered as discount or premium amortized for the period depending upon the amount of both the interest.

Requirement1:

The Journal entry for the issuance of bonds and payment of semi-annual interest.

To determine

Requirement2:

The Journal entry for the issuance of bonds and payment of semi-annual interest.

To determine

Requirement3:

The Journal entry for the issuance of bonds and payment of semi-annual interest.

Answer 6

Chapter 14, Problem E14A.30E

To determine

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.

Under Effective Interest method, the difference between the cash interest paid and interest expense of the period is computed. This difference is considered as discount or premium amortized for the period depending upon the amount of both the interest.

Requirement1:

The Journal entry for the issuance of bonds and payment of semi-annual interest.

Answer 7

Chapter 14, Problem E14A.30E

To determine

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.

Under Effective Interest method, the difference between the cash interest paid and interest expense of the period is computed. This difference is considered as discount or premium amortized for the period depending upon the amount of both the interest.

Requirement1:

The Journal entry for the issuance of bonds and payment of semi-annual interest.

Answer 8

To determine

Requirement2:

The Journal entry for the issuance of bonds and payment of semi-annual interest.

Answer 9

To determine

Requirement2:

The Journal entry for the issuance of bonds and payment of semi-annual interest.

Answer 10

To determine

Requirement3:

The Journal entry for the issuance of bonds and payment of semi-annual interest.

Answer 11

To determine

Requirement3:

The Journal entry for the issuance of bonds and payment of semi-annual interest.

Answer 12

Expert Solution & Answer

Answer 13

Expert Solution & Answer

Answer 14

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Answer 15

Ch. 14 - Prob. 1QC Ch. 14 - Daniels's bonds payable carry a stated interest...Ch. 14 - Prob. 3QC Ch. 14 - Prob. 4QC Ch. 14 - Prob. 5QC Ch. 14 - Prob. 6QC Ch. 14 - Prob. 7QC Ch. 14 - Prob. 8QC Ch. 14 - Prob. 9AQC Ch. 14 - 10B Hicks Corporation issued S500.000 of 5%,...

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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.

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Chapter 14 Solutions

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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.

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Chapter 14 Solutions

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.