Intermediate Accounting (2nd Edition)
2nd Edition
ISBN: 9780134730370
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Chapter 14, Problem 14.24BE
To determine
To prepare: The journal for recording issuing bond as per IFRS.
Given information:
Company issued bonds worth $227,200.
Number of shares issued is 200 shares.
Term period for conversion is 8 years
Market rate of interest is 6%.
Market price of common stock is $120 per share.
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i need a journal entry to record the purchase of bonds on january 1.
i also need a amortization schedule for the bonds
please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image)
Bond (Held-to-Maturity)Investment
Journalize the entries to record the following selected bond investment transactions for Marr Products:
If an amount box does not require an entry, leave it blank.
D.) Received face value of remaining bonds at their maturity.
Cash-
Investments- Hotline Inc. Bonds-
I just need help with part D, Thanks!
Review the following three bonds payable assumptions:
(Click the icon to view the bond assumptions.)
Journalize issuance of the bond and the first semiannual interest payment under each of the three assumptions. The company amortizes bond premium and discount by the effective-interest amortization method. Explanations are not required. (Record debits first, then
credits. Exclude explanations from any journal entries. Round your final answers to the nearest whole dollar.)
More Info
- X Jaid semiannually. The market rate of interest is 10% at issuance. The present value of the bonds at issuance is $86.0000.
1. Seven-year bonds payable with face value of $86,000 and stated interest rate of 10%,
paid semiannually. The market rate of interest is 10% at issuance. The present value of
the bonds at issuance is $86.000.
2. Same bonds payable as in assumption 1, but the market interest rate is 12%. The present
value of the bonds at issuance is $77,981.
3. Same bonds payable as in assumption 1,…
Chapter 14 Solutions
Intermediate Accounting (2nd Edition)
Ch. 14 - What conditions or terms does a note payable...Ch. 14 - If the market rate of interest exceeds the face or...Ch. 14 - What is included in bond issue costs and how...Ch. 14 - Prob. 14.4QCh. 14 - When a bond is issued at a discount, will its...Ch. 14 - Prob. 14.6QCh. 14 - Prob. 14.7QCh. 14 - Under IFRS, how do firms account for convertible...Ch. 14 - Prob. 14.9QCh. 14 - Can companies reclassify short-term debt expected...
Ch. 14 - Under IFRS, can companies reclassify short-term...Ch. 14 - Do companies always reclassify long-term debt that...Ch. 14 - Prob. 14.13QCh. 14 - Prob. 14.14QCh. 14 - Prob. 14.15QCh. 14 - Prob. 14.16QCh. 14 - Prob. 14.1MCCh. 14 - Prob. 14.2MCCh. 14 - Prob. 14.3MCCh. 14 - Prob. 14.4MCCh. 14 - Prob. 14.5MCCh. 14 - Clothes Horse Corp. (CHC) Issued 500,000 bonds due...Ch. 14 - Prob. 14.7MCCh. 14 - Prob. 14.8MCCh. 14 - Prob. 14.9MCCh. 14 - Prob. 14.10MCCh. 14 - Prob. 14.11MCCh. 14 - Prob. 14.1BECh. 14 - Notes Payable. Using the information provided in...Ch. 14 - Prob. 14.3BECh. 14 - Prob. 14.4BECh. 14 - Prob. 14.5BECh. 14 - Prob. 14.6BECh. 14 - Bond Terminology. Match each term with its...Ch. 14 - Bond Pricing. Fill in the missing items for each...Ch. 14 - Prob. 14.9BECh. 14 - Bond Issue Price. Using the information from...Ch. 14 - Prob. 14.11BECh. 14 - Prob. 14.12BECh. 14 - Prob. 14.13BECh. 14 - Prob. 14.14BECh. 14 - Prob. 14.15BECh. 14 - Prob. 14.16BECh. 14 - Prob. 14.17BECh. 14 - Prob. 14.18BECh. 14 - Bonds Issued between Interest Payment Dates. For...Ch. 14 - Prob. 14.20BECh. 14 - Prob. 14.21BECh. 14 - Prob. 14.22BECh. 14 - Prob. 14.23BECh. 14 - Prob. 14.24BECh. 14 - Prob. 14.25BECh. 14 - Prob. 14.26BECh. 14 - Prob. 14.27BECh. 14 - Prob. 14.28BECh. 14 - Prob. 14.29BECh. 14 - Prob. 14.30BECh. 14 - Short-Term Debt Expected to Be Refinanced, IFRS....Ch. 14 - Prob. 14.32BECh. 14 - Prob. 14.33BECh. 14 - Prob. 14.34BECh. 14 - Prob. 14.35BECh. 14 - Fair Value Option. Saratoga Company issued bonds...Ch. 14 - Prob. 14.37BECh. 14 - Financial Statement Disclosure. Use the following...Ch. 14 - Prob. 14.1ECh. 14 - Prob. 14.2ECh. 14 - Prob. 14.3ECh. 14 - Prob. 14.4ECh. 14 - Prob. 14.5ECh. 14 - Bond Issue, Interest Payments, Effective Interest...Ch. 14 - Prob. 14.7ECh. 14 - Prob. 14.8ECh. 14 - Prob. 14.9ECh. 14 - Prob. 14.10ECh. 14 - Prob. 14.11ECh. 14 - Prob. 14.12ECh. 14 - Convertible Bonds, Conversion. On January 1, 2018,...Ch. 14 - Convertible Bonds, Conversion. Using the...Ch. 14 - Prob. 14.15ECh. 14 - Prob. 14.16ECh. 14 - Prob. 14.17ECh. 14 - Prob. 14.18ECh. 14 - Warrants. DHC Associates issued 2,100 of its...Ch. 14 - Prob. 14.20ECh. 14 - Prob. 14.21ECh. 14 - Prob. 14.1PCh. 14 - Long-Term Notes Payable, Semiannual Interest,...Ch. 14 - Note Payable Issued at a Discount with...Ch. 14 - Prob. 14.4PCh. 14 - Prob. 14.5PCh. 14 - Bond Issue, Interest Payments, Effective Interest...Ch. 14 - Prob. 14.7PCh. 14 - Bonds Sold between Interest Dates at a Discount,...Ch. 14 - Prob. 14.9PCh. 14 - Prob. 14.10PCh. 14 - Convertible Bonds, Bond Issue Costs, Conversion....Ch. 14 - Prob. 14.12PCh. 14 - Prob. 14.13PCh. 14 - Prob. 1JCCh. 14 - Prob. 2JCCh. 14 - Prob. 3JCCh. 14 - Prob. 1FSCCh. 14 - Prob. 1SSCCh. 14 - Surfing the Standards Case 2: Bonds with...Ch. 14 - Prob. 1BCC
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- If bonds are issued between interest dates, the entry on the books of the issuing corporation could include a Select one: а. debit to Interest Payable b. credit to Interest Receivable. Oc. credit to Interest Expense. O d. credit to Unearned Interest. 19arrow_forwardReview the following three bonds payable assumptions: 1 (Click the icon to view the bond assumptions.) Journalize issuance of the bond and the first semiannual interest payment under each of the three assumptions. The company amortizes bond premium and discount by the effective-interest amortization method. Explanations are not required. (Record debits first, then credits. Exclude explanations from any journal entries. Round your final answers to the nearest whole dollar.) O More Info semiannually. 1. Ten-year bonds payable with face value of $89,000 and stated interest rate of 14%, paid semiannually. The market rate of interest is 14% at issuance. The present value of the bonds at issuance is $89,000. 2. Same bonds payable as in assumption 1, but the market interest rate is 16%. The present value of the bonds at issuance is $80,301. 3. Same bonds payable as in assumption 1, but the market interest rate is 12%. The present value of the bonds at issuance is $99,226. Print Donearrow_forwardHow are the bonds issued, what is the appropriate journal entryProvide example for issuing bondsarrow_forward
- Listed below are terms and definitions assoclated with bonds. Select the bond term that matches with the definitlon. Definitions Terms Allows the issuer to pay off the bonds early at a fixed price. Matures in installments. Secured only by the "full faith and credit" of the issuing corporation. Allows the investor to transfer each bond into shares of common stock. Money set aside to pay debts as they come due. a. b. C. d. е. f. Matures on a single date. 9. Supported by specific assets pledged as collateral by the issuer. h. Includes underwriting, legal, accounting, registration, and printing fees.arrow_forwardReview the following three bonds payable assumptions: (Click the icon to view the bond assumptions.) Journalize issuance of the bond and the first semiannual interest payment under each of the three assumptions. The company amortizes bond premium and discount by the effective-interest amortization method. Explanations are not required. (Record debits first, then credits. Exclude explanations from any journal entries. Round your final answers to the nearest whole dollar.) x lid semiannually. The market rate of interest is 10% at issuance. The present value of the bonds at issuance is $84,000. More Info 1. Seven-year bonds payable with face value of $84,000 and stated interest rate of 10%, paid semiannually. The market rate of interest is 10% at issuance. The present value of the bonds at issuance is $84,000. 2. Same bonds payable as in assumption 1, but the market interest rate is 12%. The present value of the bonds at issuance is $76,167. 3. Same bonds payable as in assumption 1, but…arrow_forwardwhy is the premium on bonds payable included in the journal entry?arrow_forward
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