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. Redemption 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 redemption of bonds. It is otherwise called as retirement of bonds. To prepare: The journal entry to record the issuance of bonds for “K” Company on January 1, 2019.

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Answer 1

Question

Chapter 10, Problem 10.4AP

(a)

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.

Redemption 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 redemption of bonds. It is otherwise called as retirement of bonds.

To prepare: The journal entry to record the issuance of bonds for “K” Company on January 1, 2019.

(b)

To determine

To prepare: The balance sheet presentation of long-term liabilities for “K” Company on 31^st December 2019.

(c)

To determine

To prepare: The journal entry to record the redemption of bonds for “K” Company.

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Answer 2

Question

Chapter 10, Problem 10.4AP

(a)

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.

Redemption 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 redemption of bonds. It is otherwise called as retirement of bonds.

To prepare: The journal entry to record the issuance of bonds for “K” Company on January 1, 2019.

(b)

To determine

To prepare: The balance sheet presentation of long-term liabilities for “K” Company on 31^st December 2019.

(c)

To determine

To prepare: The journal entry to record the redemption of bonds for “K” Company.

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Answer 3

Question

Chapter 10, Problem 10.4AP

(a)

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.

Redemption 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 redemption of bonds. It is otherwise called as retirement of bonds.

To prepare: The journal entry to record the issuance of bonds for “K” Company on January 1, 2019.

(b)

To determine

To prepare: The balance sheet presentation of long-term liabilities for “K” Company on 31^st December 2019.

(c)

To determine

To prepare: The journal entry to record the redemption of bonds for “K” Company.

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Answer 4

Question

Chapter 10, Problem 10.4AP

(a)

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.

Redemption 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 redemption of bonds. It is otherwise called as retirement of bonds.

To prepare: The journal entry to record the issuance of bonds for “K” Company on January 1, 2019.

(b)

To determine

To prepare: The balance sheet presentation of long-term liabilities for “K” Company on 31^st December 2019.

(c)

To determine

To prepare: The journal entry to record the redemption of bonds for “K” Company.

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Answer 5

Chapter 10, Problem 10.4AP

(a)

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.

Redemption 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 redemption of bonds. It is otherwise called as retirement of bonds.

To prepare: The journal entry to record the issuance of bonds for “K” Company on January 1, 2019.

(b)

To determine

To prepare: The balance sheet presentation of long-term liabilities for “K” Company on 31^st December 2019.

(c)

To determine

To prepare: The journal entry to record the redemption of bonds for “K” Company.

Answer 6

Chapter 10, Problem 10.4AP

(a)

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.

Redemption 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 redemption of bonds. It is otherwise called as retirement of bonds.

To prepare: The journal entry to record the issuance of bonds for “K” Company on January 1, 2019.

Answer 7

Chapter 10, Problem 10.4AP

(a)

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.

Redemption 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 redemption of bonds. It is otherwise called as retirement of bonds.

To prepare: The journal entry to record the issuance of bonds for “K” Company on January 1, 2019.

Answer 8

(b)

To determine

To prepare: The balance sheet presentation of long-term liabilities for “K” Company on 31^st December 2019.

Answer 9

(b)

To determine

To prepare: The balance sheet presentation of long-term liabilities for “K” Company on 31^st December 2019.

Answer 10

(c)

To determine

To prepare: The journal entry to record the redemption of bonds for “K” Company.

Answer 11

(c)

To determine

To prepare: The journal entry to record the redemption of bonds for “K” Company.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 10 - Prob. 1Q Ch. 10 - Prob. 2Q Ch. 10 - Prob. 3Q Ch. 10 - Prob. 4Q Ch. 10 - Prob. 5Q Ch. 10 - 6 What are long-term liabilities? Give three...Ch. 10 - Prob. 7Q Ch. 10 - Prob. 8Q Ch. 10 - Prob. 9Q Ch. 10 - Prob. 10Q

To prepare: The balance sheet presentation of long-term liabilities for “K” Company on 31st December 2019.

To prepare: The journal entry to record the redemption of bonds for “K” Company.

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To prepare: The balance sheet presentation of long-term liabilities for “K” Company on 31^st December 2019.