Intermediate Accounting, 10 Ed
10th Edition
ISBN: 9781260310177
Author: Mark W. Nelson, Wayne B. Thomas J. David Spiceland
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Videos
Question
Chapter 14, Problem 14.21P
To determine
Long-term liabilities
Long-term liabilities are obligations that the company needs to pay after at least one year or more. Long term liabilities are otherwise called as long-term debt.
To Pair: Each item from list A with the item from list B.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Ch 11 Bonds and LTL1. When will bonds sell at a premium and discount? 2. Calculate bond interest under SL method.3. Impact of amortization of bond premium/discount on interest expense.4. Give an example journal entry for amortization of bond premium/discount.5. What is the Gain/loss on redemption of bonds? How do you calculate?6. Understand method of calculating PV of future cash flows -specifically for a bond.7. Why are bonds a popular source of financing?8. Contract rate (market rate) is used for what calculation purpose?Ch 10 SE: Corporations1. What are Rights possessed by common stockholders?2. What are a journal entries for stock issuance, cash dividend, stock dividend?3. What is the calculation of dividends when cumulative preferred stock is outstanding?4. Journal entries for treasury stock, financial statement presentation. Gain/loss on reissue of treasury stock.5. Prior period adjustment - example of, accounting for?6. define, describe, why use Stock split 7. Stock dividend –…
Multiple ChoiceIdentify the choice that best completes the statement or answers the question.
9.
For a liability to exist,
a.
a past transaction or event must have occurred.
b.
the exact amount must be known.
c.
the identity of the party owed must be known.
d.
an obligation to pay cash in the future must exist.
10.
The effective interest rate on bonds is higher than the stated rate when bonds sell
a.
at face value.
b.
above face value.
c.
below face value.
d.
at maturity value.
11.
The effective interest rate on bonds is lower than the stated rate when bonds sell
a.
at maturity value.
b.
above face value.
c.
below face value.
d.
at face value.
12.
When interest expense is calculated using the effective-interest amortization method, interest expense (assuming that interest is paid annually) always equals the
a.
actual amount of interest paid.
b.
book value of the…
QUESTION 18
Which of the following is not a correct statement?
ST US govt debt instrument is called Treasury bill.
LT US govt debt instrument includes Treasury note with maturity up to 10 years and Treasury bond with maturity up to 30 years.
ST refers to maturity up to 3 years.
LT corporate debt instrument is called corporate bond.
Bond is the term for LT debt instruments in general.
Chapter 14 Solutions
Intermediate Accounting, 10 Ed
Ch. 14 - How is periodic interest determined for...Ch. 14 - As a general rule, how should long-term...Ch. 14 - How are bonds and notes the same? How do they...Ch. 14 - What information is contained in a bond indenture?...Ch. 14 - How is the price determined for a bond (or bond...Ch. 14 - A zero-coupon bond pays no interest. Explain.Ch. 14 - Prob. 14.8QCh. 14 - Compare the two commonly used methods of...Ch. 14 - Prob. 14.10QCh. 14 - When a notes stated rate of interest is...
Ch. 14 - How does an installment note differ from a note...Ch. 14 - Prob. 14.13QCh. 14 - Prob. 14.14QCh. 14 - Air Supply issued 6 million of 9%, 10-year...Ch. 14 - Both convertible bonds and bonds issued with...Ch. 14 - Prob. 14.17QCh. 14 - Cordova Tools has bonds outstanding during a year...Ch. 14 - If a company prepares its financial statements...Ch. 14 - (Based on Appendix 14A) Why will bonds always sell...Ch. 14 - Prob. 14.21QCh. 14 - Prob. 14.22QCh. 14 - Prob. 14.23QCh. 14 - Bank loan; accrued interest LO132 On October 1,...Ch. 14 - Non-interest-bearing note; accrued interest LO132...Ch. 14 - Determining the price of bonds LO142 A company...Ch. 14 - Determining the price of bonds LO142 A company...Ch. 14 - Effective interest on bonds LO142 On January 1, a...Ch. 14 - Effective interest on bonds LO142 On January 1, a...Ch. 14 - Straight-line interest on bonds LO142 On January...Ch. 14 - Investment in bonds LO142 On January 1, a company...Ch. 14 - Note with unrealistic interest rate LO143 On...Ch. 14 - Installment note LO143 On January 1, a company...Ch. 14 - Prob. 14.12BECh. 14 - Bonds with detachable warrants LO145 Hoffman...Ch. 14 - Convertible bonds LO145 Hoffman Corporation...Ch. 14 - Prob. 14.22ECh. 14 - Prob. 14.36ECh. 14 - Prob. 14.14PCh. 14 - Prob. 14.17PCh. 14 - Prob. 14.21PCh. 14 - Prob. 14.3DMP
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Q12. The following are commonly used plug items, except a. cash and marketable securities b. equity c. short-term debt d. long-term debt e. all of the choicesarrow_forward27. If a long-term bonds becomes callable due to the violation of a debt covenant Group of answer choices a. The debt may continue to be classified as long term if the entity believes the covenant can be renegotiated. b. The debt must be reclassified as current. c. Cash must be reserved to pay the debt. d. Retained earnings must be restricted in the amount of the debt.arrow_forwardch14 Q.15 The issue price of the bonds? cash? discound on bonds payable? bonds payable?arrow_forward
- q10. How would the carrying amount of the bonds be affected by the amortization of discount and premium, respectively?A. No effect; No effectB. Increase; No effectC. Increase; DecreaseD. Decrease; Increasearrow_forwardProblem 15-1A Recording and adjusting trading debt securities LO P1 Do not give answer in image formatearrow_forward18. Which of the following statements are true?Statement I. An interest rate reflects the rate of return that a creditor receives when lending money, or the rate that a borrower pays when borrowing money. Interest rates change over time, so does the rate earned by creditors who provide loans or the rate paid by borrowers who obtain loans. Statement II. Interest rate movements have a direct influence on the market values of debt securities, such as money market securities, bonds, and mortgages. Statement III. Interest rate movements have an indirect influence on equity security values because they can affect the return by investors who invest in equity securities. Statement IV. Since interest rates have an influence on securities, participants in financial markets attempt to anticipate interest rate movements when restructuring their investment or loan positions. a. I,II,III b. I,II,IV c. I,III,IV d. I,II,III,IVarrow_forward
- Q 22 Which of the following is a debt security whose payments originate from other loans, such as credit card debt, auto loans, and home equity loans? Multiple Choice junk bonds credit quality securities asset-backed securities debenturesarrow_forwardANSWER AS MANY QUESTIONS POSSIBLE THIS IS A STUDY GUIDE Ch 11 Bonds and LTL1. When will bonds sell at a premium and discount? 2. Calculate bond interest under SL method.3. Impact of amortization of bond premium/discount on interest expense.4. Give an example journal entry for amortization of bond premium/discount.5. What is the Gain/loss on redemption of bonds? How do you calculate?6. Understand method of calculating PV of future cash flows -specifically for a bond.7. Why are bonds a popular source of financing?8. Contract rate (market rate) is used for what calculation purpose?Ch 10 SE: Corporations1. What are Rights possessed by common stockholders?2. What are a journal entries for stock issuance, cash dividend, stock dividend?3. What is the calculation of dividends when cumulative preferred stock is outstanding?4. Journal entries for treasury stock, financial statement presentation. Gain/loss on reissue of treasury stock.5. Prior period adjustment - example of, accounting for?6.…arrow_forward1) Define liabilities. Provide three examples. 2) Define bond discounts and premiums. Is 2022 a good time to purchase interest-sensitive securities? Please explain. 3) Distinguish between the straight line and effective interest methods. Which is acceptable under GAAP?arrow_forward
- 1 med chp 14 excel pleae show formulas used to find price of bonds in excelarrow_forwardQ15 Regarding a bond's characteristics, which of the following is the principal loan amount that the borrower must repay? Multiple Choice maturity date time to maturity value par or face value call premiumarrow_forwardQ23. Although all bonds have certain common characteristics, theses may differ because of different_______ Choices: A. contractual provisions B. duration C. bond valuation D. coupon discount rate E. No choice givenarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
ACCOUNTING BASICS: Debits and Credits Explained; Author: Accounting Stuff;https://www.youtube.com/watch?v=VhwZ9t2b3Zk;License: Standard Youtube License