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.

Question

Want to see the full answer?

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.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Assets Current Assets Cash Credit card receivables Accounts receivable Marketable securities Food Inventories Prepaid expenses Total Current Assets Golden Bay Balance Sheet as at December 31 Year 2018 Year 2019 $ 18,500 9,807 $ 29,400 11,208 5,983 6,882 15,400 2,000 12,880 14,700 10 800 14 900 73370 79 090 Property Plant & Equipment Land Building Equipment Furnishings $ 60,500 828,400 114,900 75,730 (330,100) 16 600 766 030 839 400 $ 60,500 884,400 157,900 81,110 (422,000) 18 300 7 80 210 859 300 Net: Accumulated depreciation China, glass, silver, & linen Total Assets Liabilities & Stockholders' Equity Current Liabilities Accounts payable Accrued expenses payable Taxes payable Current mortgage payable Total Current assets $ 19,200 4,200 12,400 26 900 62 700 $16,500 5,000 20,900 26 000 68 400 Long-term liabilities Mortgage payable Total Liabilities $ $512 800 $486 400 575 500 $555 200 Stockholders' Equity Common stock ($5 par. 40,000 shares issued & OS) $200,000 Retained earnings…

Mat lives in Barbados and is desirous of starting his own business from inheritances that his parents left him. He approached you for advice on the best type of business to register. Mr. Mat said he would love to gain benefits from any tax relief that is available that the government has to offer. Give advice to Mr. Mat whether it would be more beneficial to start a Company or an Individual Trading Business. outline for Mr. Mat why setting up either a company, or a trading as business is more advantageous over the other. cover matters like: Tax rates, Available tax reliefs and or tax credits Ease of operations of a company, as well as ease of operations of an individual trading business.

General accounting

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

Want to see the full answer?

Check out a sample textbook solution

See solution

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

Want to see the full answer?

Check out a sample textbook solution

See solution

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

Want to see the full answer?

Check out a sample textbook solution

See solution

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

Want to see the full answer?

Check out a sample textbook solution

See solution

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%,...

Videos

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.

Want to see the full answer?

Chapter 14 Solutions

Videos

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.

Want to see the full answer?

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.