Chapter F, Problem 9E

To determine

Concept Introduction:

Bonds are debt instruments issued by the borrower company to its lenders. Bonds are issued at a specified rate of interest and for a specified time period. The bondholders get a fixed rate of interest on the bonds and repayment of the bonds at the maturity date.

Requirement-1:

To Prepare:

The journal entry to record the Cash proceeds from issuance of loans and borrowings

To determine

Concept Introduction:

Bonds are debt instruments issued by the borrower company to its lenders. Bonds are issued at a specified rate of interest and for a specified time period. The bondholders get a fixed rate of interest on the bonds and repayment of the bonds at the maturity date.

Requirement-2:

To Prepare:

The journal entry to record the Cash payment of loans and borrowings

To determine

Concept Introduction:

Bonds are debt instruments issued by the borrower company to its lenders. Bonds are issued at a specified rate of interest and for a specified time period. The bondholders get a fixed rate of interest on the bonds and repayment of the bonds at the maturity date.

Requirement-3:

To Indicate:

The Calculation of premium in issue of loans

To determine

Concept Introduction:

Bonds are debt instruments issued by the borrower company to its lenders. Bonds are issued at a specified rate of interest and for a specified time period. The bondholders get a fixed rate of interest on the bonds and repayment of the bonds at the maturity date.

Requirement-4:

To Prepare:

The journal entry to record the Cash payment of loans and borrowings