Bonds: Bond is a financial instrument which generates the fixed income to the investors within a specified period of time. The income generated on the bonds is known as interest amount. 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: Journal entry for bonds issued at $97

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Answer 1

Question

Chapter 15, Problem 15.6E

(a)

(1)

To determine

Bonds: Bond is a financial instrument which generates the fixed income to the investors within a specified period of time. The income generated on the bonds is known as interest amount.

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: Journal entry for bonds issued at $97

(2)

To determine

Total cost of borrowing.

(b)

(1)

To determine

To prepare: Journal entry for issuance of bonds at $105

(2)

To determine

Total cost of borrowing.

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Answer 2

Question

Chapter 15, Problem 15.6E

(a)

(1)

To determine

Bonds: Bond is a financial instrument which generates the fixed income to the investors within a specified period of time. The income generated on the bonds is known as interest amount.

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: Journal entry for bonds issued at $97

(2)

To determine

Total cost of borrowing.

(b)

(1)

To determine

To prepare: Journal entry for issuance of bonds at $105

(2)

To determine

Total cost of borrowing.

Expert Solution & Answer

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Answer 3

Question

Chapter 15, Problem 15.6E

(a)

(1)

To determine

Bonds: Bond is a financial instrument which generates the fixed income to the investors within a specified period of time. The income generated on the bonds is known as interest amount.

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: Journal entry for bonds issued at $97

(2)

To determine

Total cost of borrowing.

(b)

(1)

To determine

To prepare: Journal entry for issuance of bonds at $105

(2)

To determine

Total cost of borrowing.

Expert Solution & Answer

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Answer 4

Question

Chapter 15, Problem 15.6E

(a)

(1)

To determine

Bonds: Bond is a financial instrument which generates the fixed income to the investors within a specified period of time. The income generated on the bonds is known as interest amount.

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: Journal entry for bonds issued at $97

(2)

To determine

Total cost of borrowing.

(b)

(1)

To determine

To prepare: Journal entry for issuance of bonds at $105

(2)

To determine

Total cost of borrowing.

Expert Solution & Answer

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Answer 5

Chapter 15, Problem 15.6E

(a)

(1)

To determine

Bonds: Bond is a financial instrument which generates the fixed income to the investors within a specified period of time. The income generated on the bonds is known as interest amount.

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: Journal entry for bonds issued at $97

(2)

To determine

Total cost of borrowing.

(b)

(1)

To determine

To prepare: Journal entry for issuance of bonds at $105

(2)

To determine

Total cost of borrowing.

Answer 6

Chapter 15, Problem 15.6E

(a)

(1)

To determine

Bonds: Bond is a financial instrument which generates the fixed income to the investors within a specified period of time. The income generated on the bonds is known as interest amount.

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: Journal entry for bonds issued at $97

Answer 7

Chapter 15, Problem 15.6E

(a)

(1)

To determine

Bonds: Bond is a financial instrument which generates the fixed income to the investors within a specified period of time. The income generated on the bonds is known as interest amount.

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: Journal entry for bonds issued at $97

Answer 8

(2)

To determine

Total cost of borrowing.

Answer 9

(2)

To determine

Total cost of borrowing.

Answer 10

(b)

(1)

To determine

To prepare: Journal entry for issuance of bonds at $105

Answer 11

(b)

(1)

To determine

To prepare: Journal entry for issuance of bonds at $105

Answer 12

(2)

To determine

Total cost of borrowing.

Answer 13

(2)

To determine

Total cost of borrowing.

Answer 14

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Answer 15

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Answer 16

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Answer 17

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

Total cost of borrowing.

To prepare: Journal entry for issuance of bonds at $105

Total cost of borrowing.

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Chapter 15 Solutions