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. To Prepare: The journal entry to record issuance of bonds payable as on 1 st January 2018.

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Answer 1

Question

Chapter 9, Problem 9.7E

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.

To Prepare: The journal entry to record issuance of bonds payable as on 1^st January 2018.

To determine

To Prepare: The journal entry to record the semiannual interest expenses as on 30^th June 2018.

To determine

To Prepare: The journal entry to record the semiannual interest expenses as on 31^st December 2018.

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Answer 2

Question

Chapter 9, Problem 9.7E

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.

To Prepare: The journal entry to record issuance of bonds payable as on 1^st January 2018.

To determine

To Prepare: The journal entry to record the semiannual interest expenses as on 30^th June 2018.

To determine

To Prepare: The journal entry to record the semiannual interest expenses as on 31^st December 2018.

Expert Solution & Answer

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Answer 3

Question

Chapter 9, Problem 9.7E

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.

To Prepare: The journal entry to record issuance of bonds payable as on 1^st January 2018.

To determine

To Prepare: The journal entry to record the semiannual interest expenses as on 30^th June 2018.

To determine

To Prepare: The journal entry to record the semiannual interest expenses as on 31^st December 2018.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 4

Question

Chapter 9, Problem 9.7E

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.

To Prepare: The journal entry to record issuance of bonds payable as on 1^st January 2018.

To determine

To Prepare: The journal entry to record the semiannual interest expenses as on 30^th June 2018.

To determine

To Prepare: The journal entry to record the semiannual interest expenses as on 31^st December 2018.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 5

Chapter 9, Problem 9.7E

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.

To Prepare: The journal entry to record issuance of bonds payable as on 1^st January 2018.

To determine

To Prepare: The journal entry to record the semiannual interest expenses as on 30^th June 2018.

To determine

To Prepare: The journal entry to record the semiannual interest expenses as on 31^st December 2018.

Answer 6

Chapter 9, Problem 9.7E

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.

To Prepare: The journal entry to record issuance of bonds payable as on 1^st January 2018.

Answer 7

Chapter 9, Problem 9.7E

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.

To Prepare: The journal entry to record issuance of bonds payable as on 1^st January 2018.

Answer 8

To determine

To Prepare: The journal entry to record the semiannual interest expenses as on 30^th June 2018.

Answer 9

To determine

To Prepare: The journal entry to record the semiannual interest expenses as on 30^th June 2018.

Answer 10

To determine

To Prepare: The journal entry to record the semiannual interest expenses as on 31^st December 2018.

Answer 11

To determine

To Prepare: The journal entry to record the semiannual interest expenses as on 31^st December 2018.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 9 - What is capital structure? How do the capital...Ch. 9 - Prob. 2RQ Ch. 9 - How do interest expense and the carrying value of...Ch. 9 - Prob. 4RQ Ch. 9 - What are bond issue costs? What is an underwriter?Ch. 9 - Why do some companies issue bonds rather than...Ch. 9 - Prob. 7RQ Ch. 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

Solution Summary: The author explains that bonds are a kind of interest bearing notes payable, usually issued by companies, universities, and governmental organizations.

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To Prepare: The journal entry to record the semiannual interest expenses as on 30^th June 2018.

To Prepare: The journal entry to record the semiannual interest expenses as on 31^st December 2018.

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Chapter 9 Solutions

Solution Summary: The author explains that bonds are a kind of interest bearing notes payable, usually issued by companies, universities, and governmental organizations.

Concept explainers

Videos

To Prepare: The journal entry to record the semiannual interest expenses as on 30th June 2018.

To Prepare: The journal entry to record the semiannual interest expenses as on 31st December 2018.

Want to see the full answer?

Chapter 9 Solutions

To Prepare: The journal entry to record the semiannual interest expenses as on 30^th June 2018.

To Prepare: The journal entry to record the semiannual interest expenses as on 31^st December 2018.