The issue price of bonds

Question

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Answer 1

Question

Chapter 9, Problem 9.57BP

1.

To determine

To identify: The issue price of bonds

2.

To determine

Bonds Payable: Bonds payable are referred to long-term debts of the business, issued to various lenders known as bondholders, generally in multiples of $1,000 per bond, to raise fund for financing the operations.

Stated interest rate: It refers to the interest rate that is stated on the face of the bonds.

Market interest rate: It refers to the interest rate that the lenders expect, or demands from the borrower to part with their money as loan to them.

To identify: The issue price of bonds

3.

(a)

To determine

To prepare: Journal entry to record the issuance of the bonds on February 28, 2018.

(b)

To determine

To prepare: Journal entry to record the payment of interest and amortization of bonds discount on August 31, 2018.

(c)

To determine

To prepare: Journal entry for accrual of interest and bond discount amortization on December 31, 2018.

(d)

To determine

To prepare: Journal entry to record the payment of interest and amortization of bonds discount on February 28, 2019.

4.

To determine

To Report: Interest payable and bonds payable on Company S’s balance sheet at December 31, 2018.

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Answer 2

Question

Chapter 9, Problem 9.57BP

1.

To determine

To identify: The issue price of bonds

2.

To determine

Bonds Payable: Bonds payable are referred to long-term debts of the business, issued to various lenders known as bondholders, generally in multiples of $1,000 per bond, to raise fund for financing the operations.

Stated interest rate: It refers to the interest rate that is stated on the face of the bonds.

Market interest rate: It refers to the interest rate that the lenders expect, or demands from the borrower to part with their money as loan to them.

To identify: The issue price of bonds

3.

(a)

To determine

To prepare: Journal entry to record the issuance of the bonds on February 28, 2018.

(b)

To determine

To prepare: Journal entry to record the payment of interest and amortization of bonds discount on August 31, 2018.

(c)

To determine

To prepare: Journal entry for accrual of interest and bond discount amortization on December 31, 2018.

(d)

To determine

To prepare: Journal entry to record the payment of interest and amortization of bonds discount on February 28, 2019.

4.

To determine

To Report: Interest payable and bonds payable on Company S’s balance sheet at December 31, 2018.

Expert Solution & Answer

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Answer 3

Question

Chapter 9, Problem 9.57BP

1.

To determine

To identify: The issue price of bonds

2.

To determine

Bonds Payable: Bonds payable are referred to long-term debts of the business, issued to various lenders known as bondholders, generally in multiples of $1,000 per bond, to raise fund for financing the operations.

Stated interest rate: It refers to the interest rate that is stated on the face of the bonds.

Market interest rate: It refers to the interest rate that the lenders expect, or demands from the borrower to part with their money as loan to them.

To identify: The issue price of bonds

3.

(a)

To determine

To prepare: Journal entry to record the issuance of the bonds on February 28, 2018.

(b)

To determine

To prepare: Journal entry to record the payment of interest and amortization of bonds discount on August 31, 2018.

(c)

To determine

To prepare: Journal entry for accrual of interest and bond discount amortization on December 31, 2018.

(d)

To determine

To prepare: Journal entry to record the payment of interest and amortization of bonds discount on February 28, 2019.

4.

To determine

To Report: Interest payable and bonds payable on Company S’s balance sheet at December 31, 2018.

Expert Solution & Answer

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Answer 4

Question

Chapter 9, Problem 9.57BP

1.

To determine

To identify: The issue price of bonds

2.

To determine

Bonds Payable: Bonds payable are referred to long-term debts of the business, issued to various lenders known as bondholders, generally in multiples of $1,000 per bond, to raise fund for financing the operations.

Stated interest rate: It refers to the interest rate that is stated on the face of the bonds.

Market interest rate: It refers to the interest rate that the lenders expect, or demands from the borrower to part with their money as loan to them.

To identify: The issue price of bonds

3.

(a)

To determine

To prepare: Journal entry to record the issuance of the bonds on February 28, 2018.

(b)

To determine

To prepare: Journal entry to record the payment of interest and amortization of bonds discount on August 31, 2018.

(c)

To determine

To prepare: Journal entry for accrual of interest and bond discount amortization on December 31, 2018.

(d)

To determine

To prepare: Journal entry to record the payment of interest and amortization of bonds discount on February 28, 2019.

4.

To determine

To Report: Interest payable and bonds payable on Company S’s balance sheet at December 31, 2018.

Expert Solution & Answer

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Answer 5

Chapter 9, Problem 9.57BP

1.

To determine

To identify: The issue price of bonds

2.

To determine

Bonds Payable: Bonds payable are referred to long-term debts of the business, issued to various lenders known as bondholders, generally in multiples of $1,000 per bond, to raise fund for financing the operations.

Stated interest rate: It refers to the interest rate that is stated on the face of the bonds.

Market interest rate: It refers to the interest rate that the lenders expect, or demands from the borrower to part with their money as loan to them.

To identify: The issue price of bonds

3.

(a)

To determine

To prepare: Journal entry to record the issuance of the bonds on February 28, 2018.

(b)

To determine

To prepare: Journal entry to record the payment of interest and amortization of bonds discount on August 31, 2018.

(c)

To determine

To prepare: Journal entry for accrual of interest and bond discount amortization on December 31, 2018.

(d)

To determine

To prepare: Journal entry to record the payment of interest and amortization of bonds discount on February 28, 2019.

4.

To determine

To Report: Interest payable and bonds payable on Company S’s balance sheet at December 31, 2018.

Answer 6

Chapter 9, Problem 9.57BP

1.

To determine

To identify: The issue price of bonds

Answer 7

Chapter 9, Problem 9.57BP

1.

To determine

To identify: The issue price of bonds

Answer 8

2.

To determine

Bonds Payable: Bonds payable are referred to long-term debts of the business, issued to various lenders known as bondholders, generally in multiples of $1,000 per bond, to raise fund for financing the operations.

Stated interest rate: It refers to the interest rate that is stated on the face of the bonds.

Market interest rate: It refers to the interest rate that the lenders expect, or demands from the borrower to part with their money as loan to them.

To identify: The issue price of bonds

Answer 9

2.

To determine

Bonds Payable: Bonds payable are referred to long-term debts of the business, issued to various lenders known as bondholders, generally in multiples of $1,000 per bond, to raise fund for financing the operations.

Stated interest rate: It refers to the interest rate that is stated on the face of the bonds.

Market interest rate: It refers to the interest rate that the lenders expect, or demands from the borrower to part with their money as loan to them.

To identify: The issue price of bonds

Answer 10

3.

(a)

To determine

To prepare: Journal entry to record the issuance of the bonds on February 28, 2018.

Answer 11

3.

(a)

To determine

To prepare: Journal entry to record the issuance of the bonds on February 28, 2018.

Answer 12

(b)

To determine

To prepare: Journal entry to record the payment of interest and amortization of bonds discount on August 31, 2018.

Answer 13

(b)

To determine

To prepare: Journal entry to record the payment of interest and amortization of bonds discount on August 31, 2018.

Answer 14

(c)

To determine

To prepare: Journal entry for accrual of interest and bond discount amortization on December 31, 2018.

Answer 15

(c)

To determine

To prepare: Journal entry for accrual of interest and bond discount amortization on December 31, 2018.

Answer 16

(d)

To determine

To prepare: Journal entry to record the payment of interest and amortization of bonds discount on February 28, 2019.

Answer 17

(d)

To determine

To prepare: Journal entry to record the payment of interest and amortization of bonds discount on February 28, 2019.

Answer 18

4.

To determine

To Report: Interest payable and bonds payable on Company S’s balance sheet at December 31, 2018.

Answer 19

4.

To determine

To Report: Interest payable and bonds payable on Company S’s balance sheet at December 31, 2018.

Answer 20

Expert Solution & Answer

Answer 21

Expert Solution & Answer

Answer 22

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Answer 23

Ch. 9 - Brownlee Company issued 525,000, 8%, six-year...Ch. 9 - A bond with a face value of 250,000 and a quoted...Ch. 9 - Mission Furniture issued 500,000 in bonds payable...Ch. 9 - Bonds with an 8% stated interest rate were issued...Ch. 9 - Brimfest Corporation issued 2,400,000, 10-year, 6%...Ch. 9 - The Discount on Bonds Payable account a.is an...Ch. 9 - The discount on a bond payable becomes...Ch. 9 - The carrying value of Bonds Payable equals a.Bonds...Ch. 9 - Prob. 9QC Ch. 9 - Prob. 10QC

The issue price of bonds

Solution Summary: The author explains that bonds are long-term promissory notes that are represented by a company while borrowing money from investors to raise fund for financing the operations.

To identify: The issue price of bonds

To prepare: Journal entry to record the issuance of the bonds on February 28, 2018.

To prepare: Journal entry to record the payment of interest and amortization of bonds discount on August 31, 2018.

To prepare: Journal entry for accrual of interest and bond discount amortization on December 31, 2018.

To prepare: Journal entry to record the payment of interest and amortization of bonds discount on February 28, 2019.

To Report: Interest payable and bonds payable on Company S’s balance sheet at December 31, 2018.

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