Loose-leaf for Fundamentals of Financial Accounting with Connect
5th Edition
ISBN: 9781259619007
Author: Fred Phillips Associate Professor
Publisher: McGraw-Hill Education
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Question
Chapter 10, Problem 10.10ME
To determine
To Show: The presentation of bonds that would be reported in on January 2, 2016
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The issue price of the bonds is
*see attached
a. P 1,767,120b. P 1,769,640c. P 1,779,120d. P 1,999,200
q9.
Bond premium should be reported in the statement of financial positionA. along with other premium accounts such as those resulting from stock transactions.B. as deferred credit.C. as a direct addition to the face amount of the bonds.D. as a deduction from the face of the bonds.
A bond is issued at a price of 103 and retired early at aprice of 97. Which of the following is true?a. A gain will be reported on the income statement whenthe bond is issued.b. A loss will be reported on the income statement whenthe bond is issued.c. A gain will be reported on the income statement whenthe bond is retired.d. A loss will be reported on the income statement whenthe bond is retired.
Chapter 10 Solutions
Loose-leaf for Fundamentals of Financial Accounting with Connect
Ch. 10 - Prob. 1QCh. 10 - Prob. 2QCh. 10 - What three factors influence the dollar amount...Ch. 10 - Prob. 4QCh. 10 - Prob. 5QCh. 10 - Prob. 6QCh. 10 - Prob. 7QCh. 10 - If a company has a long-term loan that has only...Ch. 10 - What are the reasons that some bonds are issued at...Ch. 10 - Prob. 10Q
Ch. 10 - Will the stated interest rate be higher than the...Ch. 10 - What is the carrying value of a bond payable?Ch. 10 - What is the difference between a secured bond and...Ch. 10 - Prob. 14QCh. 10 - Prob. 15QCh. 10 - Prob. 16QCh. 10 - Prob. 17QCh. 10 - Which of the following best describes Accrued...Ch. 10 - Prob. 2MCCh. 10 - Prob. 3MCCh. 10 - Prob. 4MCCh. 10 - Which of the following does not impact the...Ch. 10 - Which of the following is false when a bond is...Ch. 10 - To determine if a bond will be issued at a...Ch. 10 - A bond is issued at a price of 103 and retired...Ch. 10 - In a recent year. Land O Lakes, Inc., reported (in...Ch. 10 - Prob. 10MCCh. 10 - Recording Unearned Revenues A local theater...Ch. 10 - Prob. 10.2MECh. 10 - Prob. 10.3MECh. 10 - Reporting Payroll Tax Liabilities Refer to M10-3....Ch. 10 - Prob. 10.5MECh. 10 - Prob. 10.6MECh. 10 - Prob. 10.7MECh. 10 - Prob. 10.8MECh. 10 - Prob. 10.9MECh. 10 - Prob. 10.10MECh. 10 - Recording Bonds Issued at Face Value Schlitterbahn...Ch. 10 - Prob. 10.12MECh. 10 - Computing the Debt-to-Assets Ratio and the Times...Ch. 10 - Analyzing the Impact of Transactions on the...Ch. 10 - Prob. 10.15MECh. 10 - Prob. 10.16MECh. 10 - Prob. 10.17MECh. 10 - Prob. 10.1ECh. 10 - Recording a Note Payable through Its Time to...Ch. 10 - Recording Payroll Costs McLoyd Company completed...Ch. 10 - Recording Payroll Costs with and without...Ch. 10 - Prob. 10.5ECh. 10 - Determining and Recording the Financial Statement...Ch. 10 - Preparing Journal Entries to Record Issuance of...Ch. 10 - Preparing Journal Entries to Record Issuance of...Ch. 10 - Prob. 10.9ECh. 10 - Prob. 10.10ECh. 10 - (Supplement 10A) Recording the Effects of a...Ch. 10 - Prob. 10.12ECh. 10 - Prob. 10.13ECh. 10 - Prob. 10.14ECh. 10 - (Supplement 10B) Recording the Effects of a...Ch. 10 - Prob. 10.16ECh. 10 - Determining Financial Effects of Transactions...Ch. 10 - Recording and Reporting Current Liabilities with...Ch. 10 - Recording and Reporting Current Liabilities...Ch. 10 - Prob. 10.4CPCh. 10 - Determining Financial Statement Reporting of...Ch. 10 - Prob. 10.6CPCh. 10 - (Supplement 10B) Recording Bond Issuance and...Ch. 10 - Prob. 10.8CPCh. 10 - (Supplement 10A) Completing an Amortization...Ch. 10 - (Supplements 10B or 10C) Completing an...Ch. 10 - Prob. 10.1PACh. 10 - Prob. 10.2PACh. 10 - Recording and Reporting Current Liabilities...Ch. 10 - Prob. 10.4PACh. 10 - Prob. 10.5PACh. 10 - Prob. 10.6PACh. 10 - Prob. 10.7PACh. 10 - Prob. 10.8PACh. 10 - Prob. 10.1PBCh. 10 - Recording and Reporting Current Liabilities with...Ch. 10 - Prob. 10.3PBCh. 10 - Prob. 10.4PBCh. 10 - Recording and Explaining the Early Retirement of...Ch. 10 - Prob. 10.6PBCh. 10 - (Supplement 10B) Recording Bond Issue, Interest...Ch. 10 - (Supplement 10C) Recording Bond Issue, Interest...Ch. 10 - Prob. 10.1COPCh. 10 - Prob. 10.1SDCCh. 10 - Prob. 10.2SDCCh. 10 - Prob. 10.4SDCCh. 10 - Prob. 10.5SDCCh. 10 - Prob. 10.6SDCCh. 10 - Prob. 10.7SDCCh. 10 - Prob. 10.8SDCCh. 10 - (Supplement 10C) Preparing a Bond Amortization...Ch. 10 - Prob. 10.1CC
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Similar questions
- Determine whether the following bonds payable will be issued at par value, at a premium, or at a discount. A. Evergreen company issued bonds payable that pay stated interest of 6 1/4%. On the date of issuance the market interest rate was 6 3/4% ________arrow_forwardq3. For accounting purposes, interest expense recognized on bonds payable should be based on theA. effective interest rate, considering the issue price and the transaction costs.B. nominal interest rate.C. rate stated on the face of the bonds.D. market rate of interest on the reporting date.arrow_forwardCalculate the quoted price on June 1, 2011 of the bond outlined below. (Assume that the face value is $100, that the purchase price is $923.19, that the bond interest is paid semiannually, that the bond was originally issues at its face value, that the bond is redeemed for its face value at maturity and that the market rate is compounded semiannually)arrow_forward
- Presented below is information taken from a bond investment amortization schedule with related fair values provided. These bonds are classified as available-for-sale. 31.12.14 31.12.15 31.12.16Amortized Cost Tk. 491,150 519,442 550000Fair Value Tk. 497,000 509,000 550000Required:(a) Indicate whether the bonds were purchased at a discount or at a premium.(b) Prepare the adjusting entry to record the bonds at fair value at December 31, 2014. The Fair Value Adjustment account has a debit balance of Tk. 1,000 prior to adjustment.(c) Prepare the adjusting entry to record the bonds at fair value at December 31, 2016arrow_forwardA bond traded at 971⁄2 means thatarrow_forward*See the attached photo The issue price of the bonds is a. P 1,767,120b. P 1,769,640c. P 1,779,120d. P 1,999,200arrow_forward
- Assume bonds payable are amortized using the straight-line amortization method unless stated otherwise. Pricing bonds Bond prices depend on the market rate of interest, stated rate of interest and time. Requirements Compute the price of the following 8% bonds of Country Telecom. a. $100,000 issued at 75.25 $100,000 issued at 94.50 b. $100,000 issued at 103 50 c. $100,000 issued at 94.50 d. $100,000 issued at 103.25 2. Which bond will Country Telecom have to pay the most to retire at maturity? Explain your answer.arrow_forwardThe following data relate to a $2,000,000, 8% bond issued for a selected semiannual interest period: Bond carrying amount at beginning of period $2,125,000Interest paid during period 160,000 Interest expense allocable to the period 148,750 (a) Were the bonds issued at a discount or at a premium? (b) What is the unamortized amount of the discount or premium account at the beginningof the period? (c) What account was debited to amortize the discount or premium?arrow_forwardProvide information for 2 bond issuance transactions: 1 where the bonds were sold at a premium; and 1 where the bonds were sold at a discount.arrow_forward
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