Bond: Bond is a debt instrument which provides the long term debt for the company and company pays the interest to its bondholders. Amortization of Bonds: Bonds issued at discount or premium then the discounted or premium value is amortized from the contractual interest over a period of time and comes under the income statement. 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 of the issuance of bond.

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Answer 1

Question

Chapter 15, Problem 15.9AP

(a)

To determine

Bond: Bond is a debt instrument which provides the long term debt for the company and company pays the interest to its bondholders.

Amortization of Bonds: Bonds issued at discount or premium then the discounted or premium value is amortized from the contractual interest over a period of time and comes under the income statement.

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 of the issuance of bond.

(b)

To determine

To prepare: The amortization table for three interest period.

(c)

To determine

To prepare: The journal entry of the accrual interest and amortization of discount on January 1, 2017.

(d)

To determine

To prepare: The journal entry for the payment of interest.

(e)

To determine

To prepare: The journal entry of the accrual interest and amortization of discount on January 1, 2018.

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Answer 2

Question

Chapter 15, Problem 15.9AP

(a)

To determine

Bond: Bond is a debt instrument which provides the long term debt for the company and company pays the interest to its bondholders.

Amortization of Bonds: Bonds issued at discount or premium then the discounted or premium value is amortized from the contractual interest over a period of time and comes under the income statement.

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 of the issuance of bond.

(b)

To determine

To prepare: The amortization table for three interest period.

(c)

To determine

To prepare: The journal entry of the accrual interest and amortization of discount on January 1, 2017.

(d)

To determine

To prepare: The journal entry for the payment of interest.

(e)

To determine

To prepare: The journal entry of the accrual interest and amortization of discount on January 1, 2018.

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Answer 3

Question

Chapter 15, Problem 15.9AP

(a)

To determine

Bond: Bond is a debt instrument which provides the long term debt for the company and company pays the interest to its bondholders.

Amortization of Bonds: Bonds issued at discount or premium then the discounted or premium value is amortized from the contractual interest over a period of time and comes under the income statement.

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 of the issuance of bond.

(b)

To determine

To prepare: The amortization table for three interest period.

(c)

To determine

To prepare: The journal entry of the accrual interest and amortization of discount on January 1, 2017.

(d)

To determine

To prepare: The journal entry for the payment of interest.

(e)

To determine

To prepare: The journal entry of the accrual interest and amortization of discount on January 1, 2018.

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Answer 4

Question

Chapter 15, Problem 15.9AP

(a)

To determine

Bond: Bond is a debt instrument which provides the long term debt for the company and company pays the interest to its bondholders.

Amortization of Bonds: Bonds issued at discount or premium then the discounted or premium value is amortized from the contractual interest over a period of time and comes under the income statement.

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 of the issuance of bond.

(b)

To determine

To prepare: The amortization table for three interest period.

(c)

To determine

To prepare: The journal entry of the accrual interest and amortization of discount on January 1, 2017.

(d)

To determine

To prepare: The journal entry for the payment of interest.

(e)

To determine

To prepare: The journal entry of the accrual interest and amortization of discount on January 1, 2018.

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Answer 5

Chapter 15, Problem 15.9AP

(a)

To determine

Bond: Bond is a debt instrument which provides the long term debt for the company and company pays the interest to its bondholders.

Amortization of Bonds: Bonds issued at discount or premium then the discounted or premium value is amortized from the contractual interest over a period of time and comes under the income statement.

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 of the issuance of bond.

(b)

To determine

To prepare: The amortization table for three interest period.

(c)

To determine

To prepare: The journal entry of the accrual interest and amortization of discount on January 1, 2017.

(d)

To determine

To prepare: The journal entry for the payment of interest.

(e)

To determine

To prepare: The journal entry of the accrual interest and amortization of discount on January 1, 2018.

Answer 6

Chapter 15, Problem 15.9AP

(a)

To determine

Bond: Bond is a debt instrument which provides the long term debt for the company and company pays the interest to its bondholders.

Amortization of Bonds: Bonds issued at discount or premium then the discounted or premium value is amortized from the contractual interest over a period of time and comes under the income statement.

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 of the issuance of bond.

Answer 7

Chapter 15, Problem 15.9AP

(a)

To determine

Bond: Bond is a debt instrument which provides the long term debt for the company and company pays the interest to its bondholders.

Amortization of Bonds: Bonds issued at discount or premium then the discounted or premium value is amortized from the contractual interest over a period of time and comes under the income statement.

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 of the issuance of bond.

Answer 8

(b)

To determine

To prepare: The amortization table for three interest period.

Answer 9

(b)

To determine

To prepare: The amortization table for three interest period.

Answer 10

(c)

To determine

To prepare: The journal entry of the accrual interest and amortization of discount on January 1, 2017.

Answer 11

(c)

To determine

To prepare: The journal entry of the accrual interest and amortization of discount on January 1, 2017.

Answer 12

(d)

To determine

To prepare: The journal entry for the payment of interest.

Answer 13

(d)

To determine

To prepare: The journal entry for the payment of interest.

Answer 14

(e)

To determine

To prepare: The journal entry of the accrual interest and amortization of discount on January 1, 2018.

Answer 15

(e)

To determine

To prepare: The journal entry of the accrual interest and amortization of discount on January 1, 2018.

Answer 16

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Answer 17

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Answer 18

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Answer 19

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: The amortization table for three interest period.

To prepare: The journal entry of the accrual interest and amortization of discount on January 1, 2017.

To prepare: The journal entry for the payment of interest.

To prepare: The journal entry of the accrual interest and amortization of discount on January 1, 2018.

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Chapter 15 Solutions