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. Notes payable Notes Payable is a written promise to pay a certain amount on a future date, with certain percentage of interest. Companies use to issue notes payable to meet short-term financing needs. To Prepare: The journal entry to record the sale of both issues to underwriters, assume there is no accrued interest and no issue costs for shares.

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Answer 1

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Chapter 14, Problem 14.14E

(1)

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.

Notes payable

Notes Payable is a written promise to pay a certain amount on a future date, with certain percentage of interest. Companies use to issue notes payable to meet short-term financing needs.

To Prepare: The journal entry to record the sale of both issues to underwriters, assume there is no accrued interest and no issue costs for shares.

(2)

To determine

To Prepare: The journal entry to record the first semiannual interest payment for both the issue.

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E13.8 (LO 2) (Refinancing of Short-Term Debt) On December 31, 2020, McDaniel Company had $1,200,000 of short-term debt in the form of notes payable due February 2, 2021. On January 21, 2021, the company issued 25,000 shares of its common stock for $38 per share, receiving $950,000 proceeds after brokerage fees and other costs of issuance. On February 2, 2021, the proceeds from the stock sale, supplemented by an additional $250,000 cash, are used to liquidate the $1,200,000 debt. The December 31, 2020, balance sheet is issued on February 23, 2021.InstructionsShow how the $1,200,000 of short-term debt should be presented on the December 31, 2020, balance sheet, including note disclosure.

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Answer 2

Question

Chapter 14, Problem 14.14E

(1)

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.

Notes payable

Notes Payable is a written promise to pay a certain amount on a future date, with certain percentage of interest. Companies use to issue notes payable to meet short-term financing needs.

To Prepare: The journal entry to record the sale of both issues to underwriters, assume there is no accrued interest and no issue costs for shares.

(2)

To determine

To Prepare: The journal entry to record the first semiannual interest payment for both the issue.

Expert Solution & Answer

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Answer 3

Question

Chapter 14, Problem 14.14E

(1)

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.

Notes payable

Notes Payable is a written promise to pay a certain amount on a future date, with certain percentage of interest. Companies use to issue notes payable to meet short-term financing needs.

To Prepare: The journal entry to record the sale of both issues to underwriters, assume there is no accrued interest and no issue costs for shares.

(2)

To determine

To Prepare: The journal entry to record the first semiannual interest payment for both the issue.

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Answer 4

Question

Chapter 14, Problem 14.14E

(1)

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.

Notes payable

Notes Payable is a written promise to pay a certain amount on a future date, with certain percentage of interest. Companies use to issue notes payable to meet short-term financing needs.

To Prepare: The journal entry to record the sale of both issues to underwriters, assume there is no accrued interest and no issue costs for shares.

(2)

To determine

To Prepare: The journal entry to record the first semiannual interest payment for both the issue.

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Answer 5

Chapter 14, Problem 14.14E

(1)

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.

Notes payable

Notes Payable is a written promise to pay a certain amount on a future date, with certain percentage of interest. Companies use to issue notes payable to meet short-term financing needs.

To Prepare: The journal entry to record the sale of both issues to underwriters, assume there is no accrued interest and no issue costs for shares.

(2)

To determine

To Prepare: The journal entry to record the first semiannual interest payment for both the issue.

Answer 6

Chapter 14, Problem 14.14E

(1)

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.

Notes payable

Notes Payable is a written promise to pay a certain amount on a future date, with certain percentage of interest. Companies use to issue notes payable to meet short-term financing needs.

To Prepare: The journal entry to record the sale of both issues to underwriters, assume there is no accrued interest and no issue costs for shares.

Answer 7

Chapter 14, Problem 14.14E

(1)

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.

Notes payable

Notes Payable is a written promise to pay a certain amount on a future date, with certain percentage of interest. Companies use to issue notes payable to meet short-term financing needs.

To Prepare: The journal entry to record the sale of both issues to underwriters, assume there is no accrued interest and no issue costs for shares.

Answer 8

(2)

To determine

To Prepare: The journal entry to record the first semiannual interest payment for both the issue.

Answer 9

(2)

To determine

To Prepare: The journal entry to record the first semiannual interest payment for both the issue.

Answer 10

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Answer 11

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Answer 12

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Answer 13

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

To Prepare: The journal entry to record the first semiannual interest payment for both the issue.

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Chapter 14 Solutions