Financial Accounting
4th Edition
ISBN: 9781259307959
Author: J. David Spiceland, Wayne M Thomas, Don Herrmann
Publisher: McGraw-Hill Education
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Chapter 9, Problem 9.16BE
To determine
Bonds
Bonds are a kind of interest bearing notes payable, usually issued by companies, universities and governmental organizations. It is a debt instrument used for the purpose of raising fund of the corporations or governmental agencies. If selling price of the bond is equal to its face value, it is called as par on bond. If selling price of the bond is lesser than the face value, it is known as discount on bond. If selling price of the bond is greater than the face value, it is known as premium on bond.
Retirement of Bonds
The process of repaying the sale amount of bonds to bondholders at the time of maturity or before the maturity period is called as retirement of bonds. It is otherwise called as redemption of bonds.
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Brief Exercise 9-18 (Algo) Record early retirement of bonds issued at a discount (LO9-6)
Discount Pizza retires its 6% bonds for $50,000 before their scheduled maturity. At the time, the bonds have a face amount of
$52,200 and a carrying value of $48,313.
Record the early retirement of the bonds. (If no entry is required for a particular transaction/event, select "No Journal Entry
Required" in the first account field.)
View transaction list
Journal entry worksheet
Please Provide correct solution, correct Method.
No Missing steps / calculations.
No Handwriting please
Chapter 9 Solutions
Financial Accounting
Ch. 9 - What is capital structure? How do the capital...Ch. 9 - Prob. 2RQCh. 9 - How do interest expense and the carrying value of...Ch. 9 - Prob. 4RQCh. 9 - What are bond issue costs? What is an underwriter?Ch. 9 - Why do some companies issue bonds rather than...Ch. 9 - Prob. 7RQCh. 9 - What are convertible bonds? How do they benefit...Ch. 9 - How do we calculate the issue price of bonds? Is...Ch. 9 - Prob. 10RQ
Ch. 9 - If bonds issue at a discount, is the stated...Ch. 9 - Prob. 12RQCh. 9 - Prob. 13RQCh. 9 - Prob. 14RQCh. 9 - 15.If bonds issue at a discount, what happens to...Ch. 9 - Prob. 16RQCh. 9 - Prob. 17RQCh. 9 - Prob. 18RQCh. 9 - 19.If bonds with a face value of 250,000 and a...Ch. 9 - Prob. 20RQCh. 9 - Prob. 9.1BECh. 9 - Prob. 9.2BECh. 9 - Calculate the issue price of bonds (LO95) Ultimate...Ch. 9 - Calculate the issue price of bonds (LO95) Ultimate...Ch. 9 - Calculate the issue price of bonds (LO95) Ultimate...Ch. 9 - Prob. 9.6BECh. 9 - Prob. 9.7BECh. 9 - Prob. 9.8BECh. 9 - Prob. 9.9BECh. 9 - Record bond issue and related annual interest...Ch. 9 - Record bond issue and related annual interest...Ch. 9 - Prob. 9.12BECh. 9 - Prob. 9.13BECh. 9 - Prob. 9.14BECh. 9 - Prob. 9.15BECh. 9 - Prob. 9.16BECh. 9 - Prob. 9.17BECh. 9 - Calculate ratios (LO98) Surfs Up, a manufacturer...Ch. 9 - Prob. 9.1ECh. 9 - Prob. 9.2ECh. 9 - Compare operating and capital teasel (LO93, LO98)...Ch. 9 - listed below are terms and definitions associated...Ch. 9 - Prob. 9.5ECh. 9 - Prob. 9.6ECh. 9 - Prob. 9.7ECh. 9 - Prob. 9.8ECh. 9 - Prob. 9.9ECh. 9 - Prob. 9.10ECh. 9 - Prob. 9.11ECh. 9 - Prob. 9.12ECh. 9 - Prob. 9.13ECh. 9 - Prob. 9.14ECh. 9 - Prob. 9.15ECh. 9 - Prob. 9.16ECh. 9 - Prob. 9.17ECh. 9 - Prob. 9.18ECh. 9 - (LO92, LO98) On January 1, 2018, the general...Ch. 9 - Record and analyze installment notes (LO92) On...Ch. 9 - Explore the impact of leases on the debt to equity...Ch. 9 - Prob. 9.3APCh. 9 - Prob. 9.4APCh. 9 - Understand a bond amortization schedule (LO96) On...Ch. 9 - Prob. 9.6APCh. 9 - Calculate and analyze ratios (LO98) Selected...Ch. 9 - Prob. 9.1BPCh. 9 - Explore the impact of leases on the debt to equity...Ch. 9 - Prob. 9.3BPCh. 9 - Prob. 9.4BPCh. 9 - Prob. 9.5BPCh. 9 - Prob. 9.6BPCh. 9 - Calculate and analyze ratios (LO98) Selected...Ch. 9 - Prob. 9.1APCPCh. 9 - Prob. 9.2APFACh. 9 - The Buckle, Inc. Financial information for Buckle...Ch. 9 - American Eagle Outfitters, Inc., vs. The Buckle,...Ch. 9 - Ethics The Tony Hawk Skate Park was built in early...Ch. 9 - Prob. 9.7APWCCh. 9 - Prob. 9.8APEM
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- Don't give answer in image formatarrow_forwardIf the bonds are retired on January 1, 2021, at 103, what will SIGE NA report as a loss on redemption? *see attached a. P 250,000b. P 365,000c. P 400,000d. P 425,000arrow_forwardBrief Exercise 9-19 (Algo) Record early retirement of bonds issued at a premium (LO9-6) Premium Pizza retires its 7% bonds for $63,000 before their scheduled maturity. At the time, the bonds have a face amount of $60,900 and a carrying value of $65,343. Record the early retirement of the bonds. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheetarrow_forward
- Please help me. Fast solution please. Thankyou.arrow_forwardThe balance sheet for Pharoah Consulting reports the following information on July 1, 2022. Long-term liabilities Bonds payable Less: Discount on bonds payable $2,000,000 160,000 Pharoah decides to redeem these bonds at 105 after paying annual interest. Prepare the journal entry to record the redemption on July 1, 2022. (Credit acco entered. Do not indent manually.) Date Account Titles and Explanation July 1 H $1,840,000 titles are automatically indented when au Debit Creditarrow_forwardPlease don't provide answer in image format thank youarrow_forward
- Premium Pizza retires its 7% bonds for $72,000 before their scheduled maturity. At the time, the bonds have a face amount of $70,000 and a carrying value of $76,567. Record the early retirement of the bonds.arrow_forwardDiscount Pizza retires its 7% bonds for $68,000 before their scheduled maturity. At the time, the bonds have a face amount of $70,000 and a carrying value of $64,168. Record the early retirement of the bonds.arrow_forwardPresented below is a partial amortization schedule for Premium Pizza.1. Record the bond issue assuming the face amount of bonds payable is $70,000. 2. Record the first interest payment. 3. Explain why interest expense decreases each period.arrow_forward
- Please help mearrow_forwardHealth First Ltd. retires its 8% bonds for $74,000 before its maturity date. Carrying value at the time of retiring such bonds was $78,693. Record the entry for retirement of bonds. о О Date Description Cash Bonds Payable To record the retirement of bonds before maturity) Date Bonds Payable Gain on Bonds Retirement Cash Description To record the retirement of bonds before maturity) Date Bonds Payable Cash Description To record the retirement of bonds before maturity) Date Bonds Payable Cash Description To record the retirement of bonds before maturity) Ref. Debit in S) $ Credit(in 5) 78.693 S 78,693 Ref. Debit(in 5) Credit(in 5) $ 78694 S 4,693 $ 74,000 Ref Debit(in S) Credit(in S $ 78,693 $ 78,693 Ref. Debit in 5). Credit in 5) S 74,000 $ 74,000arrow_forwardNonearrow_forward
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