The journal entry to record the sale of these bonds of “W” Company on January 1, 2019.

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Answer 1

Question

Chapter 10, Problem 10.11E

Bonds

Bonds are a form of interest bearing notes payable issued by corporations, universities and governmental agencies. It is a debt instrument generated for the purpose of rising capital of the corporations or governmental agencies.

Bonds issued at discount:

The bonds sell less than the face value amount, due to stated interest rate is lesser than the market interest rate. When the stated interest rate is lesser than the market interest rate, the bond will sold at discount.

(a) (1)

To determine

To prepare: The journal entry to record the sale of these bonds of “W” Company on January 1, 2019.

(2)

To determine

To prepare: The total cost of borrowing for “W” Company.

(b)(1)

To determine

Bonds issued at premium:

The bonds sell more than the face value amount, due to stated interest rate is higher than the market interest rate. When the stated interest rate is higher than the market interest rate, the bond will sold at premium.

To prepare: The journal entry to record the sale of these bonds of “W” Company as on January 1, 2019.

(2)

To determine

To prepare: The total cost of borrowing for “W” Company.

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Answer 2

Question

Chapter 10, Problem 10.11E

Bonds

Bonds are a form of interest bearing notes payable issued by corporations, universities and governmental agencies. It is a debt instrument generated for the purpose of rising capital of the corporations or governmental agencies.

Bonds issued at discount:

The bonds sell less than the face value amount, due to stated interest rate is lesser than the market interest rate. When the stated interest rate is lesser than the market interest rate, the bond will sold at discount.

(a) (1)

To determine

To prepare: The journal entry to record the sale of these bonds of “W” Company on January 1, 2019.

(2)

To determine

To prepare: The total cost of borrowing for “W” Company.

(b)(1)

To determine

Bonds issued at premium:

The bonds sell more than the face value amount, due to stated interest rate is higher than the market interest rate. When the stated interest rate is higher than the market interest rate, the bond will sold at premium.

To prepare: The journal entry to record the sale of these bonds of “W” Company as on January 1, 2019.

(2)

To determine

To prepare: The total cost of borrowing for “W” Company.

Expert Solution & Answer

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Answer 3

Question

Chapter 10, Problem 10.11E

Bonds

Bonds are a form of interest bearing notes payable issued by corporations, universities and governmental agencies. It is a debt instrument generated for the purpose of rising capital of the corporations or governmental agencies.

Bonds issued at discount:

The bonds sell less than the face value amount, due to stated interest rate is lesser than the market interest rate. When the stated interest rate is lesser than the market interest rate, the bond will sold at discount.

(a) (1)

To determine

To prepare: The journal entry to record the sale of these bonds of “W” Company on January 1, 2019.

(2)

To determine

To prepare: The total cost of borrowing for “W” Company.

(b)(1)

To determine

Bonds issued at premium:

The bonds sell more than the face value amount, due to stated interest rate is higher than the market interest rate. When the stated interest rate is higher than the market interest rate, the bond will sold at premium.

To prepare: The journal entry to record the sale of these bonds of “W” Company as on January 1, 2019.

(2)

To determine

To prepare: The total cost of borrowing for “W” Company.

Expert Solution & Answer

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See solution

Answer 4

Question

Chapter 10, Problem 10.11E

Bonds

Bonds are a form of interest bearing notes payable issued by corporations, universities and governmental agencies. It is a debt instrument generated for the purpose of rising capital of the corporations or governmental agencies.

Bonds issued at discount:

The bonds sell less than the face value amount, due to stated interest rate is lesser than the market interest rate. When the stated interest rate is lesser than the market interest rate, the bond will sold at discount.

(a) (1)

To determine

To prepare: The journal entry to record the sale of these bonds of “W” Company on January 1, 2019.

(2)

To determine

To prepare: The total cost of borrowing for “W” Company.

(b)(1)

To determine

Bonds issued at premium:

The bonds sell more than the face value amount, due to stated interest rate is higher than the market interest rate. When the stated interest rate is higher than the market interest rate, the bond will sold at premium.

To prepare: The journal entry to record the sale of these bonds of “W” Company as on January 1, 2019.

(2)

To determine

To prepare: The total cost of borrowing for “W” Company.

Expert Solution & Answer

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See solution

Answer 5

Chapter 10, Problem 10.11E

Bonds

Bonds are a form of interest bearing notes payable issued by corporations, universities and governmental agencies. It is a debt instrument generated for the purpose of rising capital of the corporations or governmental agencies.

Bonds issued at discount:

The bonds sell less than the face value amount, due to stated interest rate is lesser than the market interest rate. When the stated interest rate is lesser than the market interest rate, the bond will sold at discount.

(a) (1)

To determine

To prepare: The journal entry to record the sale of these bonds of “W” Company on January 1, 2019.

(2)

To determine

To prepare: The total cost of borrowing for “W” Company.

(b)(1)

To determine

Bonds issued at premium:

The bonds sell more than the face value amount, due to stated interest rate is higher than the market interest rate. When the stated interest rate is higher than the market interest rate, the bond will sold at premium.

To prepare: The journal entry to record the sale of these bonds of “W” Company as on January 1, 2019.

(2)

To determine

To prepare: The total cost of borrowing for “W” Company.

Answer 6

Chapter 10, Problem 10.11E

Bonds

Bonds are a form of interest bearing notes payable issued by corporations, universities and governmental agencies. It is a debt instrument generated for the purpose of rising capital of the corporations or governmental agencies.

Bonds issued at discount:

The bonds sell less than the face value amount, due to stated interest rate is lesser than the market interest rate. When the stated interest rate is lesser than the market interest rate, the bond will sold at discount.

(a) (1)

To determine

To prepare: The journal entry to record the sale of these bonds of “W” Company on January 1, 2019.

Answer 7

Chapter 10, Problem 10.11E

Bonds

Bonds are a form of interest bearing notes payable issued by corporations, universities and governmental agencies. It is a debt instrument generated for the purpose of rising capital of the corporations or governmental agencies.

Bonds issued at discount:

The bonds sell less than the face value amount, due to stated interest rate is lesser than the market interest rate. When the stated interest rate is lesser than the market interest rate, the bond will sold at discount.

(a) (1)

To determine