Bonds payable: The bonds payable can be defined as the instruments that enables the businesses to raise funds for their day to business operations or any other financial needs like purchase of fixed assets – land, building, equipment etc. If bonds are issued for more than their par value, it is said that they are issued at premium. The amount over and above the par value is premium amount. If bonds are issued for less than their par value, it is said that they are issued at discount. The amount less than the par value is discount amount. Requirement 1 The cash to be received on issue of the bonds payable

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Answer 1

Question

Chapter 14, Problem P14.43BPGB

To determine

Concept Introduction:

Bonds payable:

The bonds payable can be defined as the instruments that enables the businesses to raise funds for their day to business operations or any other financial needs like purchase of fixed assets $-$ land, building, equipment etc.

If bonds are issued for more than their par value, it is said that they are issued at premium. The amount over and above the par value is premium amount.

If bonds are issued for less than their par value, it is said that they are issued at discount. The amount less than the par value is discount amount.

Requirement 1

The cash to be received on issue of the bonds payable

To determine

Requirement 2

To prepare:

An amortization table using effective interest amortization method for first two semi-annual interest periods

To determine

Requirement 3

To prepare:

Journal entries for issuance of bonds and first two interest payments

Expert Solution & Answer

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Lui Coffee Company roasts and packs coffee beans. The process begins by placing coffee beans into the Roasting Department. From the Roasting Department, coffee beans are then transferred to the Packing Department. The following is a partial work in process account of the Roasting Department at March 31: ACCOUNT ACCOUNT NO. Date Item Debit Credit BalanceDebit BalanceCredit March 1 Bal., 25,000 units, 10% completed 21,250 31 Direct materials, 600,000 units 450,000 471,250 31 Direct labor 244,600 715,850 31 Factory overhead 415,820 1,131,670 31 Goods transferred, 605,000 units ? 31 Bal., ? units, 45% completed ? Required:1. Prepare a cost of production report, and identify the missing amounts for Work in Process—Roasting Department.

Jane Yoakim, President of Estefan Co., recently read an article that claimed that at least 100 of the country's 500 largest companies were either adopting or considering adopting the last in, first out (LIFO) method for valuing inventories. The article stated that the firms were switching to LIFO to (1) neutralize the effect of inflation in their financial statements, (2) eliminate inventory profits, and (3) reduce income taxes. Ms. Yoakim wonders if the switch would benefit her company. Estefan currently uses the first-in, first-out (FIFO) method of inventory valuation in its periodic inventory system. The company has a high inventory turnover rate, and inventories represent a significant proportion of the assets. Ms. Yoakim has been told that the LIFO system is more costly to operate and will provide little benefit to companies with high turnover. She intends to use the inventory method that is best for the company in the long run rather than selecting a method just because it is the…

Answer 2

Question

Chapter 14, Problem P14.43BPGB

To determine

Concept Introduction:

Bonds payable:

The bonds payable can be defined as the instruments that enables the businesses to raise funds for their day to business operations or any other financial needs like purchase of fixed assets $-$ land, building, equipment etc.

If bonds are issued for more than their par value, it is said that they are issued at premium. The amount over and above the par value is premium amount.

If bonds are issued for less than their par value, it is said that they are issued at discount. The amount less than the par value is discount amount.

Requirement 1

The cash to be received on issue of the bonds payable

To determine

Requirement 2

To prepare:

An amortization table using effective interest amortization method for first two semi-annual interest periods

To determine

Requirement 3

To prepare:

Journal entries for issuance of bonds and first two interest payments

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 14, Problem P14.43BPGB

To determine

Concept Introduction:

Bonds payable:

The bonds payable can be defined as the instruments that enables the businesses to raise funds for their day to business operations or any other financial needs like purchase of fixed assets $-$ land, building, equipment etc.

If bonds are issued for more than their par value, it is said that they are issued at premium. The amount over and above the par value is premium amount.

If bonds are issued for less than their par value, it is said that they are issued at discount. The amount less than the par value is discount amount.

Requirement 1

The cash to be received on issue of the bonds payable

To determine

Requirement 2

To prepare:

An amortization table using effective interest amortization method for first two semi-annual interest periods

To determine

Requirement 3

To prepare:

Journal entries for issuance of bonds and first two interest payments

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 14, Problem P14.43BPGB

To determine

Concept Introduction:

Bonds payable:

The bonds payable can be defined as the instruments that enables the businesses to raise funds for their day to business operations or any other financial needs like purchase of fixed assets $-$ land, building, equipment etc.

If bonds are issued for more than their par value, it is said that they are issued at premium. The amount over and above the par value is premium amount.

If bonds are issued for less than their par value, it is said that they are issued at discount. The amount less than the par value is discount amount.

Requirement 1

The cash to be received on issue of the bonds payable

To determine

Requirement 2

To prepare:

An amortization table using effective interest amortization method for first two semi-annual interest periods

To determine

Requirement 3

To prepare:

Journal entries for issuance of bonds and first two interest payments

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 14, Problem P14.43BPGB

To determine

Concept Introduction:

Bonds payable:

The bonds payable can be defined as the instruments that enables the businesses to raise funds for their day to business operations or any other financial needs like purchase of fixed assets $-$ land, building, equipment etc.

If bonds are issued for more than their par value, it is said that they are issued at premium. The amount over and above the par value is premium amount.

If bonds are issued for less than their par value, it is said that they are issued at discount. The amount less than the par value is discount amount.

Requirement 1

The cash to be received on issue of the bonds payable

To determine

Requirement 2

To prepare:

An amortization table using effective interest amortization method for first two semi-annual interest periods

To determine

Requirement 3

To prepare:

Journal entries for issuance of bonds and first two interest payments

Answer 6

Chapter 14, Problem P14.43BPGB

To determine

Concept Introduction:

Bonds payable:

The bonds payable can be defined as the instruments that enables the businesses to raise funds for their day to business operations or any other financial needs like purchase of fixed assets $-$ land, building, equipment etc.

If bonds are issued for more than their par value, it is said that they are issued at premium. The amount over and above the par value is premium amount.

If bonds are issued for less than their par value, it is said that they are issued at discount. The amount less than the par value is discount amount.

Requirement 1

The cash to be received on issue of the bonds payable

Answer 7

Chapter 14, Problem P14.43BPGB

To determine

Concept Introduction:

Bonds payable:

The bonds payable can be defined as the instruments that enables the businesses to raise funds for their day to business operations or any other financial needs like purchase of fixed assets $-$ land, building, equipment etc.

If bonds are issued for more than their par value, it is said that they are issued at premium. The amount over and above the par value is premium amount.

If bonds are issued for less than their par value, it is said that they are issued at discount. The amount less than the par value is discount amount.

Requirement 1

The cash to be received on issue of the bonds payable

Answer 8

To determine

Requirement 2

To prepare:

An amortization table using effective interest amortization method for first two semi-annual interest periods

Answer 9

To determine

Requirement 2

To prepare:

An amortization table using effective interest amortization method for first two semi-annual interest periods

Answer 10

To determine

Requirement 3

To prepare:

Journal entries for issuance of bonds and first two interest payments

Answer 11

To determine

Requirement 3

To prepare:

Journal entries for issuance of bonds and first two interest payments

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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Requirement 2

To prepare:

An amortization table using effective interest amortization method for first two semi-annual interest periods

Requirement 3

To prepare:

Journal entries for issuance of bonds and first two interest payments

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Chapter 14 Solutions

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Requirement 2 To prepare: An amortization table using effective interest amortization method for first two semi-annual interest periods

Requirement 3 To prepare: Journal entries for issuance of bonds and first two interest payments

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Chapter 14 Solutions

Requirement 2

To prepare:

An amortization table using effective interest amortization method for first two semi-annual interest periods

Requirement 3

To prepare:

Journal entries for issuance of bonds and first two interest payments