FIN. ACCT.-TOOLS FOR BUS.DEC.MAKING-CODE
9th Edition
ISBN: 9781119595724
Author: Kimmel
Publisher: WILEY C
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Question
Chapter 10, Problem 10.3aDIE
(a)
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.
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. Examples of long-term liabilities are long-term bonds, long-term notes payable mortgage payable and more.
To prepare: The
(b)
To determine
To prepare: The long-term liabilities section of the
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Complete the following:
(a) Prepare the journal entry to issue $100,000 bonds that sold for $94,000.
(b) Prepare the journal entry to issue $100,000 bonds that sold for $104,000.
Help me
Blue Spruce Corp. issues $310,000 of bonds for $325,500.
Prepare the journal entry to record the issuance of the bonds.
Chapter 10 Solutions
FIN. ACCT.-TOOLS FOR BUS.DEC.MAKING-CODE
Ch. 10 - Prob. 1QCh. 10 - Prob. 2QCh. 10 - Prob. 3QCh. 10 - Prob. 4QCh. 10 - Prob. 5QCh. 10 - (a) Identify three taxes commonly paid by...Ch. 10 - Prob. 7QCh. 10 - Prob. 8QCh. 10 - Contrast these types of bonds: (a) Secured and...Ch. 10 - Prob. 10Q
Ch. 10 - Prob. 11QCh. 10 - Prob. 12QCh. 10 - Prob. 13QCh. 10 - Lee and Jay are discussing how the market price of...Ch. 10 - Prob. 15QCh. 10 - Prob. 16QCh. 10 - Prob. 17QCh. 10 - Prob. 18QCh. 10 - Prob. 19QCh. 10 - Prob. 20QCh. 10 - Prob. 21QCh. 10 - Prob. 22QCh. 10 - Prob. 23QCh. 10 - Prob. 24QCh. 10 - Prob. 25QCh. 10 - Prob. 26QCh. 10 - Prob. 27QCh. 10 - Prob. 28QCh. 10 - Prob. 10.1BECh. 10 - Prob. 10.2BECh. 10 - Prob. 10.3BECh. 10 - Prob. 10.4BECh. 10 - Prob. 10.5BECh. 10 - Prob. 10.6BECh. 10 - Prob. 10.7BECh. 10 - Prob. 10.8BECh. 10 - Prob. 10.9BECh. 10 - Prob. 10.10BECh. 10 - Prob. 10.15BECh. 10 - Prob. 10.16BECh. 10 - Prob. 10.1aDIECh. 10 - Prob. 10.1bDIECh. 10 - State whether each of the following statements is...Ch. 10 - Prob. 10.3aDIECh. 10 - Prob. 10.3bDIECh. 10 - Prob. 10.2ECh. 10 - Prob. 10.3ECh. 10 - Prob. 10.5ECh. 10 - Prob. 10.6ECh. 10 - Prob. 10.9ECh. 10 - Prob. 10.10ECh. 10 - Prob. 10.13ECh. 10 - Prob. 10.14ECh. 10 - Prob. 10.15ECh. 10 - Prob. 10.16ECh. 10 - Prob. 10.17ECh. 10 - Prob. 10.18ECh. 10 - Prob. 10.23ECh. 10 - Prob. 10.3EYCTCh. 10 - Prob. 10.4EYCTCh. 10 - Prob. 10.5EYCTCh. 10 - Prob. 10.9EYCTCh. 10 - Prob. 10.10EYCTCh. 10 - Prob. 10.14EYCTCh. 10 - Prob. 10.1IECh. 10 - Prob. 10.2IECh. 10 - Prob. 10.3IECh. 10 - Prob. 10.4IE
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Similar questions
- EWO Enterprises issues $4,500,000 of bonds payable.Required:Prepare the necessary journal entries to record the issuance of the bonds assuming the bonds were issued (a) at par, (b) at 104.5, and (c) at 99.arrow_forwardABC Company issued bonds with a face amount of $1,000,000 and received $1,000,000 cash. Prepare the journal entry to record the issuance of these is. bonds. ABC Company issued bonds with a face amount of $1,000,000 and received $900,000 in cash. Prepare the Journal entry to record the issuence of these bands. ABC Company issued bonds with a face amount of $1,000,000 and received $1,200,000 in cash. Prepare the journal entry to record the issuance of these bonds.arrow_forwardCullumber Corporation issues $430,000 of bonds for $447,200. (a) Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation eTextbook and Media List of Accounts Debit Creditarrow_forward
- (a) Prepare the journal entry to issue $500,000 bonds that sold for $470,000. (b) Prepare the journal entry to issue $500,000 bonds that sold for $518,000.arrow_forwardOn January 1, Pina Inc. issued $101050000, 9% bonds at 103. The journal entry to record the issuance of the bonds will include O a credit to Bonds Payable for $104081500. a credit to Interest Expense for $3031500. O a credit to Premium on Bonds Payable for $3031500. O a debit to Cash for $101050000.arrow_forward(a) Prepare the journal entry to issue $500,000 bonds that sold for $470,000.arrow_forward
- Crane Company issued $1,730,000 of bonds on January 1, 2022. (a) Prepare the journal entry to record the issuance of the bonds if they are issued at (1) 100, (2) 97, and (3) 105. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation (1) (2) (3) Debit Creditarrow_forwardKartel is planning to issue 360 bonds, each having a face amount of $1,000. Required: 1. Prepare the journal entry to record the sale of the bonds at par. Record issuance of bonds at par 2. Prepare the journal entry to record the sale of the bonds at a premium of $34,000. Record issuance of bonds at premium 3. Prepare the journal entry to record the sale of the bonds at a discount of $41,000. Record issuance of bonds at discount 4. Conceptual Connection: Assuming the stated rate is identical for the previous three scenarios, in which scenario is the market rate of interest (yield) highest? The bonds sell atarrow_forwardAn $800,000 bond issue on which there is an unamortized premium of $57,000 is redeemed for $785,000. Journalize the redemption of the bonds. Refer to the Chart of Accounts for exact wording of account titles.arrow_forward
- Anne Corp. issued $600,000, 5% bonds. Required: Prepare the necessary journal entries to record the issuance of these bonds assuming the bonds were issued at 92arrow_forward(b) Prepare the journal entry to issue $500,000 bonds that sold for $518,000arrow_forwardBlanca Company has the following independent bond issuances. a.) Issues $600,000 bonds at 96. b.) Issues $700,000 bonds at 102. c.) Issues $200,000 bonds at 100. Required: 1.) Prepare the journal entries to record the bond issuances under of the independent situations.arrow_forward
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