Bonds: Bonds are debt instruments issued by the borrower company to its lenders. Bonds are issued at a specified rate of interest and for a specified time period. The bondholders get a fixed rate of interest on the bonds and repayment of the bonds at the maturity date. Amortization of Bonds premium or discount: Bonds may be issued at a premium or discount. The premium or discount on issue of binds is amortized or the life of bonds using the straight line or effective rate methods. Requirement-1: To calculate: The Cash proceed from issuance of bonds

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Answer 1

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Chapter 14, Problem P14AB.44BPGB

To determine

Concept introduction:

Bonds: Bonds are debt instruments issued by the borrower company to its lenders. Bonds are issued at a specified rate of interest and for a specified time period. The bondholders get a fixed rate of interest on the bonds and repayment of the bonds at the maturity date.

Amortization of Bonds premium or discount: Bonds may be issued at a premium or discount. The premium or discount on issue of binds is amortized or the life of bonds using the straight line or effective rate methods.

Requirement-1:

To calculate: The Cash proceed from issuance of bonds

To determine

Requirement-2:

To Prepare: The Amortization table for bonds payable using the effective interest rate method

To determine

Requirement-3:

To Prepare: The journal entry for issuance of bonds and for the first semiannual interest payment and amortization

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The industrial enterprise "HUANG S.A." purchased a sorting and packaging machine from a foreign company on 1/4/2017 at a cost of €500,000. The useful life of the machine was estimated by the Management at ten (10) years, while the residual value was estimated at zero. For the transportation of the machine from abroad to the company's factory, the amount of €20,000 was paid on 15/4/2017. As the insurance coverage of the machine during transportation was the responsibility of the selling company, HUANG S.A. proceeded to insure the machine from 16/4/2017 to 15/4/2018, paying the amount of €1,200. The delivery took place on 15/4/2017. As adequate ventilation of the multifunction device is essential for its proper operation, the company fitted an air duct on the multifunction device. The cost of the air duct amounted to €2,000 and was paid on 20/4/2017. On 25/4/2017, an external electrician was paid €5,000 for the electrical connection of the device. The company also paid €5,000 to an…

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Answer 2

Question

Chapter 14, Problem P14AB.44BPGB

To determine

Concept introduction:

Bonds: Bonds are debt instruments issued by the borrower company to its lenders. Bonds are issued at a specified rate of interest and for a specified time period. The bondholders get a fixed rate of interest on the bonds and repayment of the bonds at the maturity date.

Amortization of Bonds premium or discount: Bonds may be issued at a premium or discount. The premium or discount on issue of binds is amortized or the life of bonds using the straight line or effective rate methods.

Requirement-1:

To calculate: The Cash proceed from issuance of bonds

To determine

Requirement-2:

To Prepare: The Amortization table for bonds payable using the effective interest rate method

To determine

Requirement-3:

To Prepare: The journal entry for issuance of bonds and for the first semiannual interest payment and amortization

Expert Solution & Answer

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Answer 3

Question

Chapter 14, Problem P14AB.44BPGB

To determine

Concept introduction:

Bonds: Bonds are debt instruments issued by the borrower company to its lenders. Bonds are issued at a specified rate of interest and for a specified time period. The bondholders get a fixed rate of interest on the bonds and repayment of the bonds at the maturity date.

Amortization of Bonds premium or discount: Bonds may be issued at a premium or discount. The premium or discount on issue of binds is amortized or the life of bonds using the straight line or effective rate methods.

Requirement-1:

To calculate: The Cash proceed from issuance of bonds

To determine

Requirement-2:

To Prepare: The Amortization table for bonds payable using the effective interest rate method

To determine

Requirement-3:

To Prepare: The journal entry for issuance of bonds and for the first semiannual interest payment and amortization

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 14, Problem P14AB.44BPGB

To determine

Concept introduction:

Bonds: Bonds are debt instruments issued by the borrower company to its lenders. Bonds are issued at a specified rate of interest and for a specified time period. The bondholders get a fixed rate of interest on the bonds and repayment of the bonds at the maturity date.

Amortization of Bonds premium or discount: Bonds may be issued at a premium or discount. The premium or discount on issue of binds is amortized or the life of bonds using the straight line or effective rate methods.

Requirement-1:

To calculate: The Cash proceed from issuance of bonds

To determine

Requirement-2:

To Prepare: The Amortization table for bonds payable using the effective interest rate method

To determine

Requirement-3:

To Prepare: The journal entry for issuance of bonds and for the first semiannual interest payment and amortization

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 5

Chapter 14, Problem P14AB.44BPGB

To determine

Concept introduction:

Bonds: Bonds are debt instruments issued by the borrower company to its lenders. Bonds are issued at a specified rate of interest and for a specified time period. The bondholders get a fixed rate of interest on the bonds and repayment of the bonds at the maturity date.

Amortization of Bonds premium or discount: Bonds may be issued at a premium or discount. The premium or discount on issue of binds is amortized or the life of bonds using the straight line or effective rate methods.

Requirement-1:

To calculate: The Cash proceed from issuance of bonds

To determine

Requirement-2:

To Prepare: The Amortization table for bonds payable using the effective interest rate method

To determine

Requirement-3:

To Prepare: The journal entry for issuance of bonds and for the first semiannual interest payment and amortization

Answer 6

Chapter 14, Problem P14AB.44BPGB

To determine

Concept introduction:

Bonds: Bonds are debt instruments issued by the borrower company to its lenders. Bonds are issued at a specified rate of interest and for a specified time period. The bondholders get a fixed rate of interest on the bonds and repayment of the bonds at the maturity date.

Amortization of Bonds premium or discount: Bonds may be issued at a premium or discount. The premium or discount on issue of binds is amortized or the life of bonds using the straight line or effective rate methods.

Requirement-1:

To calculate: The Cash proceed from issuance of bonds

Answer 7

Chapter 14, Problem P14AB.44BPGB

To determine

Concept introduction:

Bonds: Bonds are debt instruments issued by the borrower company to its lenders. Bonds are issued at a specified rate of interest and for a specified time period. The bondholders get a fixed rate of interest on the bonds and repayment of the bonds at the maturity date.

Amortization of Bonds premium or discount: Bonds may be issued at a premium or discount. The premium or discount on issue of binds is amortized or the life of bonds using the straight line or effective rate methods.

Requirement-1:

To calculate: The Cash proceed from issuance of bonds

Answer 8

To determine

Requirement-2:

To Prepare: The Amortization table for bonds payable using the effective interest rate method

Answer 9

To determine

Requirement-2:

To Prepare: The Amortization table for bonds payable using the effective interest rate method

Answer 10

To determine

Requirement-3:

To Prepare: The journal entry for issuance of bonds and for the first semiannual interest payment and amortization

Answer 11

To determine

Requirement-3:

To Prepare: The journal entry for issuance of bonds and for the first semiannual interest payment and amortization

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: The Amortization table for bonds payable using the effective interest rate method

Requirement-3:

To Prepare: The journal entry for issuance of bonds and for the first semiannual interest payment and amortization

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Chapter 14 Solutions

Videos

Requirement-2: To Prepare: The Amortization table for bonds payable using the effective interest rate method

Requirement-3: To Prepare: The journal entry for issuance of bonds and for the first semiannual interest payment and amortization

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Chapter 14 Solutions

Requirement-2:

To Prepare: The Amortization table for bonds payable using the effective interest rate method

Requirement-3:

To Prepare: The journal entry for issuance of bonds and for the first semiannual interest payment and amortization