Horngren's Accounting, Student Value Edition Plus MyAccountingLab with Pearson eText, Access Card Package
11th Edition
ISBN: 9780134078946
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Textbook Question
Chapter 14, Problem P14.33APGA
Analyzing and journalizing bond transactions
On January 1, 2016, Teacher Credit Union (TCU) issued 8%, 20-year bond payable with face value of $400,000. The bonds pay interest on June 30 and December 31.
Requirements
- If the market interest rate is 6% when TCU issues its bonds, will the
bonds be priced at face value, at a premium, or at a discount? Explain. - If the market interest rate is 9% when TCU issues its bonds, will the bonds be priced at face value, at a premium, or at a discount? Explain.
- The issue price of the bonds is 96. Journalize the following bond transactions:
- Issuance of the bonds on January 1, 2016.
- Payment of interest and amortization on June 30, 2016.
- Payment of interest and amortization on December 31, 2016.
- Retirement of the bond at maturity on December 31, 2035.
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Analyzing and journalizing bond transactions
On January 1, 2018, Nurses Credit Union (NCU) issued 8%, 20-year bonds payable with face value of $600,000. The bonds pay interest on June 30 and December 31.
Requirements
If the market interest rate is 7% when NCU issues its bonds, will the bonds be priced at face value, at a premium, or at a discount? Explain.
If the market interest rate is 9% when NCU issues its bonds, will the bonds be priced at face value, at a premium, or at a discount? Explain.
The issue price of the bones is 92. Journalize the following bond transactions:
a. Issuance of the bonds on January 1, 2018.
b. Payment of interest and amortization onjune 30, 2018.
c. Payment of interest and amortization on December 31, 2018.
d. Retirement of the bond at maturity on December 31, 2037, assuming the last interest payment has already been recorded.
Analyzing and journalizing bond transactions
On January 1, 2018, Nurses Credit Union (NCU) issued 8%, 20-year bonds payable with the face value of $600,000. The bonds pay interest on June 30 and December 31.
Requirements
If the market interest rate is 7% when NCU issues its bonds, will the bonds be priced at face value, at a premium, or at a discount? Explain.
If the market interest rate is 9% when NCU issues its bonds, will the bonds be priced at face value, at a premium, or at a discount? Explain.</p><hr><p></p><p><b>3.</b> The issue price of the bones is 92. Journalize the following bond transactions:</p><blockquote><p><b>a.</b> Issuance of the bonds on January 1, 2018.</p><p><b>b.</b> Payment of interest and amortization onjune 30, 2018.</p><p><b>c.</b> Payment of interest and amortization on December 31, 2018.</p><p><b>d.</b> Retirement…
Analyzing and journalizing bond transactions
On January 1, 2018, the Doctors Credit Union (DCU) issued 7%, 20-year bonds payable with the face value of $200,000. The bonds pay interest on June 30 and December 31.
Requirements
If the market interest rate is 5% when DCU issues its bonds, will the bonds be priced at face value, at a premium, or at a discount? Explain.
If the market interest rate is 8% when DCU issues its bonds, will the bonds be priced at face value, at a premium, or at a discount? Explain.
The issue price of the bonds is 93. Journalize the following bond transactions:
Issuance of the bonds on January 1, 2018.
Payment of interest and amortization on June 30,2018.
Payment of interest and amortization on December 31, 2018.
Retirement of the bond at maturity on December 31,2037, assuming the last interest payment has already been recorded.
Chapter 14 Solutions
Horngren's Accounting, Student Value Edition Plus MyAccountingLab with Pearson eText, Access Card Package
Ch. 14 - Prob. 1QCCh. 14 - Daniels's bonds payable carry a stated interest...Ch. 14 - Prob. 3QCCh. 14 - Prob. 4QCCh. 14 - Prob. 5QCCh. 14 - Prob. 6QCCh. 14 - Prob. 7QCCh. 14 - Prob. 8QCCh. 14 - Prob. 9AQCCh. 14 - 10B Hicks Corporation issued S500.000 of 5%,...
Ch. 14 - Prob. 1RQCh. 14 - Prob. 2RQCh. 14 - Prob. 3RQCh. 14 - Prob. 4RQCh. 14 - Prob. 5RQCh. 14 - Prob. 6RQCh. 14 - Prob. 7RQCh. 14 - Prob. 8RQCh. 14 - Prob. 9RQCh. 14 - Prob. 10RQCh. 14 - Prob. 11RQCh. 14 - Prob. 12RQCh. 14 - 13. What type of account is Premium on Bonds...Ch. 14 - Prob. 14RQCh. 14 - Prob. 15RQCh. 14 - Prob. 16RQCh. 14 - What does the debt to equity ratio show, and how...Ch. 14 - Prob. 18ARQCh. 14 - Prob. 19ARQCh. 14 - Prob. 20ARQCh. 14 - Prob. 21BRQCh. 14 - Prob. S14.1SECh. 14 - Prob. S14.2SECh. 14 - Prob. S14.3SECh. 14 - Pricing bonds Bond prices depend on the market...Ch. 14 - Determining bond amounts Quick Drive-Ins borrowed...Ch. 14 - Journalizing bond transactions Piper Company...Ch. 14 - Journalizing bond transactions Ogden issued a...Ch. 14 - Journalizing bond transactions Watson Mutual...Ch. 14 - Journalizing bond transactions including...Ch. 14 - Retiring bonds payable before maturity On January...Ch. 14 - Preparing the liabilities section of the balance...Ch. 14 - Prob. S14.12SECh. 14 - Prob. S14A.13SECh. 14 - Determining the present value of bond at issuance...Ch. 14 - Using the effective-interest amortization method...Ch. 14 - Prob. S14B.16SECh. 14 - Accounting for long-term notes payable...Ch. 14 - Preparing an amortization schedule and recording...Ch. 14 - Analyzing alternative plans to raise money AF...Ch. 14 - Determining bond prices and interest expense Nooks...Ch. 14 - Journalizing bond issuance and interest payments...Ch. 14 - Journalizing bond issuance and interest payments...Ch. 14 - Prob. E14.23ECh. 14 - Journalizing bond issuance and interest payments...Ch. 14 - Retiring bonds payable before maturity Parkview...Ch. 14 - Prob. E14.26ECh. 14 - Prob. E14.27ECh. 14 - Prob. E14.28ECh. 14 - Prob. E14.29ECh. 14 - Prob. E14A.30ECh. 14 - A Journalizing liability transactions and...Ch. 14 - Analyzing, journalizing, and reporting bond...Ch. 14 - Analyzing and journalizing bond transactions On...Ch. 14 - Analyzing and journalizing bond transactions On...Ch. 14 - Prob. P14.35APGACh. 14 - Determining the present value of bonds payable and...Ch. 14 - Determining the present value of bands payable and...Ch. 14 - Journalizing liability transactions and reporting...Ch. 14 - Prob. P14.39BPGBCh. 14 - Prob. P14.40BPGBCh. 14 - Prob. P14.41BPGBCh. 14 - Prob. P14.42BPGBCh. 14 - Prob. P14.43BPGBCh. 14 - Prob. P14AB.44BPGBCh. 14 - Describing bonds and journalizing transactions for...Ch. 14 - Decision Case 14-1 The following questions are not...Ch. 14 - Ethical Issue 14-1 Raffle's Kids, a nonprofit...Ch. 14 - Prob. 14.1FCCh. 14 - Prob. 14.1FSC
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