Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing money from investors to raise fund for financing the operations. Bonds Payable: Bonds payable are referred to long-term debts of the business, issued to various lenders known as bondholders, generally in multiples of $1,000 per bond, to raise fund for financing the operations. To prepare : Journal entry to record issuance of bonds payable at face value.

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Answer 1

Question

Chapter 12, Problem 12.9SE

a.

To determine

Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing money from investors to raise fund for financing the operations.

Bonds Payable: Bonds payable are referred to long-term debts of the business, issued to various lenders known as bondholders, generally in multiples of $1,000 per bond, to raise fund for financing the operations.

To prepare: Journal entry to record issuance of bonds payable at face value.

b.

To determine

To prepare: Journal entry to record the payment of semiannual cash interest.

c.

To determine

To prepare: Journal entry to record the payment of bond payable at maturity.

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Logan Inc issued a $1,600,000, 6% 10 year bond at 88 on January 1, 2018. 1. Journalize the issuance of the bond on January 1, 2018. 2. Journalize the payment of semiannual interest on the bond on June 30, 2018. Include the amortization as part of the interest payment. 3. Journalize the repayment of the bond afer the final interest payment was made. GENERAL JOURNAL POST Date Account/Description REF. Debit Credit

Analyzing and journalizing bond transactions On January 1, 2018, Educators Credit Union (ECU) issued 8%, 20-vear bonds payable with face value of $1,000,000. These bonds pay interest on June 30 and December 31. The issue price of the bonds is 109. Journalize the following bond transactions: a. Issuance of the bonds on January 1, 2018. b. Payment of interest and amortization on June 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, Educators Credit Union (ECU) issued 8%, 20-year bonds payable with the face value of $1,000,000. These bonds pay interest on June 30 and December 31. The issue price of the bonds is 109. 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.

Answer 2

Question

Chapter 12, Problem 12.9SE

a.

To determine

Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing money from investors to raise fund for financing the operations.

Bonds Payable: Bonds payable are referred to long-term debts of the business, issued to various lenders known as bondholders, generally in multiples of $1,000 per bond, to raise fund for financing the operations.

To prepare: Journal entry to record issuance of bonds payable at face value.

b.

To determine

To prepare: Journal entry to record the payment of semiannual cash interest.

c.

To determine

To prepare: Journal entry to record the payment of bond payable at maturity.

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Answer 3

Question

Chapter 12, Problem 12.9SE

a.

To determine

Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing money from investors to raise fund for financing the operations.

Bonds Payable: Bonds payable are referred to long-term debts of the business, issued to various lenders known as bondholders, generally in multiples of $1,000 per bond, to raise fund for financing the operations.

To prepare: Journal entry to record issuance of bonds payable at face value.

b.

To determine

To prepare: Journal entry to record the payment of semiannual cash interest.

c.

To determine

To prepare: Journal entry to record the payment of bond payable at maturity.

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Answer 4

Question

Chapter 12, Problem 12.9SE

a.

To determine

Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing money from investors to raise fund for financing the operations.

Bonds Payable: Bonds payable are referred to long-term debts of the business, issued to various lenders known as bondholders, generally in multiples of $1,000 per bond, to raise fund for financing the operations.

To prepare: Journal entry to record issuance of bonds payable at face value.

b.

To determine

To prepare: Journal entry to record the payment of semiannual cash interest.

c.

To determine

To prepare: Journal entry to record the payment of bond payable at maturity.

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Answer 5

Chapter 12, Problem 12.9SE

a.

To determine

Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing money from investors to raise fund for financing the operations.

Bonds Payable: Bonds payable are referred to long-term debts of the business, issued to various lenders known as bondholders, generally in multiples of $1,000 per bond, to raise fund for financing the operations.

To prepare: Journal entry to record issuance of bonds payable at face value.

b.

To determine

To prepare: Journal entry to record the payment of semiannual cash interest.

c.

To determine

To prepare: Journal entry to record the payment of bond payable at maturity.

Answer 6

Chapter 12, Problem 12.9SE

a.

To determine

Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing money from investors to raise fund for financing the operations.

Bonds Payable: Bonds payable are referred to long-term debts of the business, issued to various lenders known as bondholders, generally in multiples of $1,000 per bond, to raise fund for financing the operations.

To prepare: Journal entry to record issuance of bonds payable at face value.

Answer 7

Chapter 12, Problem 12.9SE

a.

To determine

Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing money from investors to raise fund for financing the operations.

Bonds Payable: Bonds payable are referred to long-term debts of the business, issued to various lenders known as bondholders, generally in multiples of $1,000 per bond, to raise fund for financing the operations.

To prepare: Journal entry to record issuance of bonds payable at face value.

Answer 8

b.

To determine

To prepare: Journal entry to record the payment of semiannual cash interest.

Answer 9

b.

To determine

To prepare: Journal entry to record the payment of semiannual cash interest.

Answer 10

c.

To determine

To prepare: Journal entry to record the payment of bond payable at maturity.

Answer 11

c.

To determine

To prepare: Journal entry to record the payment of bond payable at maturity.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 12 - Flipco signed a 10-year note payable on January 1,...Ch. 12 - Daniels's bonds payable carry a stated interest...Ch. 12 - A bond that matures in installments at regular...Ch. 12 - Prob. 4QC Ch. 12 - Nicholas Smith Fitness Gym has 700,000 of 20-year...Ch. 12 - Prob. 6QC Ch. 12 - Prob. 7QC Ch. 12 - The debt to equity ratio is calculated as a. Total...Ch. 12 - Mike Gordon wishes to have 80,000 in five years....Ch. 12 - Prob. 10BQC

Solution Summary: The author explains that bonds are long-term promissory notes that are represented by a company while borrowing money from investors to raise fund for financing operations.

To prepare: Journal entry to record the payment of semiannual cash interest.

To prepare: Journal entry to record the payment of bond payable at maturity.

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Chapter 12 Solutions