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. To Explain: What is being described by the announcement?

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Answer 1

Question

Chapter 14, Problem 14.4BYP

(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. 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.

To Explain: What is being described by the announcement?

(2)

To determine

The psychological reason for the securities to be priced.

(3)

To determine

To Identify: The accounting considerations for Incorporation CF and how Incorporation CF sales are recorded, and describe the Incorporation CF records the sale.

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Required information Problem 10-4A Straight-Line: Amortization of bond discount LO P2 [The following information applies to the questions displayed below.] Legacy issues $610,000 of 6.5%, four-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. They are issued at $579,203 when the market rate is 8%. Problem 10-4A Part 3 3. Prepare a straight-line amortization table for the bonds' first two years. X Answer is not complete. Semiannual Period-End Unamortized Carrying Value Discount 01/01/2019 30,797 2$ 579,203 O 06/30/2019 583,052 O 12/31/2019 586,902 O 06/30/2020 590,751 O 12/31/2020 594,601

g 2021 Question 6 of 17 -/1 View Policies Current Attempt in Progress On October 1, 2020 Swifty Corporation issued 4%, 10-year bonds with a face value of $6000000 at 104. Interest is paid on October 1 and April 1, with any premiums or discounts amortized on a straight-line basis. The entry to record the issuance of the bonds would include a credit of O $120000 to Interest Payable. O $240000 to Discount on Bonds Payable. O $240000 to Premium on Bonds Payable. O $5760000 to Bonds Payable. Save for Later Attempts: 0 of 1 used Submit Answer MacBook Air

Question 4 of 17 -/1 View Policies Current Attempt in Progress Crane Company issues $24000000, 4%, 5-year bonds dated January 1, 2020 on January 1, 2020. The bonds pay interest semiannually on June 30 and December 31. The bonds are issued to yield 3%. What are the proceeds from the bond issue? 1.5% 2.0% 3% 4% Present value of a single sum for 5 0.92826 0.90573 0.86261 0.82193 periods Present value of a single sum for 10 0.86167 0.82035 0.74409 0.67556 periods Present value of an annuity for 5 4.78264 4.71346 4.57971 4.45182 periods Present value of an annuity for 10 9.22218 8.98259 8.53020 8.11090 periods O $24000000 O $25099221 O $25106726 O $25095151 MacBook Air II

Answer 2

Question

Chapter 14, Problem 14.4BYP

(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. 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.

To Explain: What is being described by the announcement?

(2)

To determine

The psychological reason for the securities to be priced.

(3)

To determine

To Identify: The accounting considerations for Incorporation CF and how Incorporation CF sales are recorded, and describe the Incorporation CF records the sale.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 14, Problem 14.4BYP

(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. 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.

To Explain: What is being described by the announcement?

(2)

To determine

The psychological reason for the securities to be priced.

(3)

To determine

To Identify: The accounting considerations for Incorporation CF and how Incorporation CF sales are recorded, and describe the Incorporation CF records the sale.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 14, Problem 14.4BYP

(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. 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.

To Explain: What is being described by the announcement?

(2)

To determine

The psychological reason for the securities to be priced.

(3)

To determine

To Identify: The accounting considerations for Incorporation CF and how Incorporation CF sales are recorded, and describe the Incorporation CF records the sale.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 14, Problem 14.4BYP

(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. 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.

To Explain: What is being described by the announcement?

(2)

To determine

The psychological reason for the securities to be priced.

(3)

To determine

To Identify: The accounting considerations for Incorporation CF and how Incorporation CF sales are recorded, and describe the Incorporation CF records the sale.

Answer 6

Chapter 14, Problem 14.4BYP

(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. 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.

To Explain: What is being described by the announcement?

Answer 7

Chapter 14, Problem 14.4BYP

(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. 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.

To Explain: What is being described by the announcement?

Answer 8

(2)

To determine

The psychological reason for the securities to be priced.

Answer 9

(2)

To determine

The psychological reason for the securities to be priced.

Answer 10

(3)

To determine

To Identify: The accounting considerations for Incorporation CF and how Incorporation CF sales are recorded, and describe the Incorporation CF records the sale.

Answer 11

(3)

To determine

To Identify: The accounting considerations for Incorporation CF and how Incorporation CF sales are recorded, and describe the Incorporation CF records the sale.

Answer 12

Expert Solution & Answer

Answer 13

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Answer 14

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Answer 15

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 - On January 1, 2018, Brandon Electronics issued 85...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. 14.8Q Ch. 14 - Compare the two commonly used methods of...Ch. 14 - Prob. 14.10Q

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

The psychological reason for the securities to be priced.

To Identify: The accounting considerations for Incorporation CF and how Incorporation CF sales are recorded, and describe the Incorporation CF records the sale.

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Chapter 14 Solutions