Bond Issuance: The Company issues the bonds when it needed of long-term debt and for this purpose it calls the public to buy the bond, this whole process is known as bond issuance. Bond Redemption: Bond redemption refers the payment of bonds to its bondholder is made by the issuer. Journalizing: It is the process of recording the transactions of an organization in a chronological order. Based on these journal entries recorded, the amounts are posted to the relevant ledger accounts. Accounting rules for journal entries: To increase balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue and gains. To decrease balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue and gains. To Prepare: The journal entry for the issuance of bond.

Question

Want to see the full answer?

Answer 1

Question

Chapter 15, Problem 15.16E

(a)

To determine

Bond Issuance: The Company issues the bonds when it needed of long-term debt and for this purpose it calls the public to buy the bond, this whole process is known as bond issuance.

Bond Redemption: Bond redemption refers the payment of bonds to its bondholder is made by the issuer.

Journalizing: It is the process of recording the transactions of an organization in a chronological order. Based on these journal entries recorded, the amounts are posted to the relevant ledger accounts.

Accounting rules for journal entries:

To increase balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue and gains.

To decrease balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue and gains.

To Prepare: The journal entry for the issuance of bond.

(b)

To determine

To Prepare: (journal entry for the payment of interest and amortization of interest.

(c)

To determine

To Prepare: journal entry for the redemption of bonds.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $84,920 in assets to launch the business. On December 31, the company's records show the following items and amounts. Cash Accounts receivable Office supplies Land Office equipment Accounts payable Owner investments $ 8,450 Cash withdrawals by owner 16,950 4,080 Rent expense Consulting revenue Salaries expense 18,860 Telephone expense Miscellaneous expenses 46,020 9,280 84,920 $ 2,930 16,950 4,420 7,900 860 680 Check my work Exercise 1-21 (Algo) Preparing a statement of cash flows LO P2 Also assume the following: a. The owner's initial investment consists of $38,900 cash and $46,020 in land. b. The company's $18,860 equipment purchase is paid in cash. c. Cash paid to employees is $2,700. The accounts payable balance of $9,280 consists of the $4,080 office supplies…

ht = ences X On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $84,920 in assets to launch the business. On December 31, the company's records show the following items and amounts. Cash withdrawals by owner Consulting revenue Salaries expense Cash $ 8,450 Accounts receivable 16,950 Office supplies 4,080 Rent expense Land 46,020 Office equipment 18,860 Telephone expense Accounts payable 9,280 Owner investments 84,920 Miscellaneous expenses $ 2,930 16,950 4,420 7,900 860 680 Exercise 1-18 (Algo) Preparing an income statement LO P2 Using the above information prepare a December income statement for the business. ERNST CONSULTING Income Statement Revenues Rent expense Salaries expense Telephone expense Total revenues $ 4,420 7,900 860 $ SA Assets Cash 8,450 Accounts receivable 16,950 Office supplies 4,080 Land 46,020 Office equipment 18,860 navable 9,280 13,180 5 11 of 14 Next >

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…

Answer 2

Question

Chapter 15, Problem 15.16E

(a)

To determine

Bond Issuance: The Company issues the bonds when it needed of long-term debt and for this purpose it calls the public to buy the bond, this whole process is known as bond issuance.

Bond Redemption: Bond redemption refers the payment of bonds to its bondholder is made by the issuer.

Journalizing: It is the process of recording the transactions of an organization in a chronological order. Based on these journal entries recorded, the amounts are posted to the relevant ledger accounts.

Accounting rules for journal entries:

To increase balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue and gains.

To decrease balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue and gains.

To Prepare: The journal entry for the issuance of bond.

(b)

To determine

To Prepare: (journal entry for the payment of interest and amortization of interest.

(c)

To determine

To Prepare: journal entry for the redemption of bonds.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 15, Problem 15.16E

(a)

To determine

Bond Issuance: The Company issues the bonds when it needed of long-term debt and for this purpose it calls the public to buy the bond, this whole process is known as bond issuance.

Bond Redemption: Bond redemption refers the payment of bonds to its bondholder is made by the issuer.

Journalizing: It is the process of recording the transactions of an organization in a chronological order. Based on these journal entries recorded, the amounts are posted to the relevant ledger accounts.

Accounting rules for journal entries:

To increase balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue and gains.

To decrease balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue and gains.

To Prepare: The journal entry for the issuance of bond.

(b)

To determine

To Prepare: (journal entry for the payment of interest and amortization of interest.

(c)

To determine

To Prepare: journal entry for the redemption of bonds.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 15, Problem 15.16E

(a)

To determine

Bond Issuance: The Company issues the bonds when it needed of long-term debt and for this purpose it calls the public to buy the bond, this whole process is known as bond issuance.

Bond Redemption: Bond redemption refers the payment of bonds to its bondholder is made by the issuer.

Journalizing: It is the process of recording the transactions of an organization in a chronological order. Based on these journal entries recorded, the amounts are posted to the relevant ledger accounts.

Accounting rules for journal entries:

To increase balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue and gains.

To decrease balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue and gains.

To Prepare: The journal entry for the issuance of bond.

(b)

To determine

To Prepare: (journal entry for the payment of interest and amortization of interest.

(c)

To determine

To Prepare: journal entry for the redemption of bonds.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 15, Problem 15.16E

(a)

To determine

Bond Issuance: The Company issues the bonds when it needed of long-term debt and for this purpose it calls the public to buy the bond, this whole process is known as bond issuance.

Bond Redemption: Bond redemption refers the payment of bonds to its bondholder is made by the issuer.

Journalizing: It is the process of recording the transactions of an organization in a chronological order. Based on these journal entries recorded, the amounts are posted to the relevant ledger accounts.

Accounting rules for journal entries:

To increase balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue and gains.

To decrease balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue and gains.

To Prepare: The journal entry for the issuance of bond.

(b)

To determine

To Prepare: (journal entry for the payment of interest and amortization of interest.

(c)

To determine

To Prepare: journal entry for the redemption of bonds.

Answer 6

Chapter 15, Problem 15.16E

(a)

To determine

Bond Issuance: The Company issues the bonds when it needed of long-term debt and for this purpose it calls the public to buy the bond, this whole process is known as bond issuance.

Bond Redemption: Bond redemption refers the payment of bonds to its bondholder is made by the issuer.

Journalizing: It is the process of recording the transactions of an organization in a chronological order. Based on these journal entries recorded, the amounts are posted to the relevant ledger accounts.

Accounting rules for journal entries:

To increase balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue and gains.

To decrease balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue and gains.

To Prepare: The journal entry for the issuance of bond.

Answer 7

Chapter 15, Problem 15.16E

(a)

To determine

Bond Issuance: The Company issues the bonds when it needed of long-term debt and for this purpose it calls the public to buy the bond, this whole process is known as bond issuance.

Bond Redemption: Bond redemption refers the payment of bonds to its bondholder is made by the issuer.

Journalizing: It is the process of recording the transactions of an organization in a chronological order. Based on these journal entries recorded, the amounts are posted to the relevant ledger accounts.

Accounting rules for journal entries:

To increase balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue and gains.

To decrease balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue and gains.

To Prepare: The journal entry for the issuance of bond.

Answer 8

(b)

To determine

To Prepare: (journal entry for the payment of interest and amortization of interest.

Answer 9

(b)

To determine

To Prepare: (journal entry for the payment of interest and amortization of interest.

Answer 10

(c)

To determine

To Prepare: journal entry for the redemption of bonds.

Answer 11

(c)

To determine

To Prepare: journal entry for the redemption of bonds.

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. 15 - Prob. 1Q Ch. 15 - 2. Contrast the following types of bonds: (a)...Ch. 15 - Prob. 3Q Ch. 15 - Prob. 4Q Ch. 15 - Prob. 5Q Ch. 15 - Prob. 6Q Ch. 15 - Prob. 7Q Ch. 15 - Prob. 8Q Ch. 15 - Prob. 9Q Ch. 15 - Prob. 10Q

To Prepare: (journal entry for the payment of interest and amortization of interest.

To Prepare: journal entry for the redemption of bonds.

Want to see the full answer?

Chapter 15 Solutions