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. Premium on bonds payable: It occurs when the bonds are issued at a high price than the face value. To Explain : Normal balance of premium on bonds payable account.

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Answer 1

Question

Chapter 12, Problem 13RQ

To determine

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.

Premium on bonds payable: It occurs when the bonds are issued at a high price than the face value.

To Explain: Normal balance of premium on bonds payable account.

To determine

To Explain: The treatment of balance of premium on bonds payable in determining carrying amount of a bond.

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Students have asked these similar questions

What type of account is Discount on Bonds Payable? What is its normal balance? Is it added to or subtracted from the Bonds Payable account to determine the carrying amount?

How is periodic interest determined for outstanding liabilities? For outstanding receivables? How does the approach compare from one form of debt instrument (say bonds payable) to another (say notes payable)?

How do we compute for the Carrying Value beginning of a Bonds Payable? of a Notes Payable?Are there differences in the amortization table for Bonds Payable and Notes Payable? State the differences.

Answer 2

Question

Chapter 12, Problem 13RQ

To determine

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.

Premium on bonds payable: It occurs when the bonds are issued at a high price than the face value.

To Explain: Normal balance of premium on bonds payable account.

To determine

To Explain: The treatment of balance of premium on bonds payable in determining carrying amount of a bond.

Expert Solution & Answer

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Answer 3

Question

Chapter 12, Problem 13RQ

To determine

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.

Premium on bonds payable: It occurs when the bonds are issued at a high price than the face value.

To Explain: Normal balance of premium on bonds payable account.

To determine

To Explain: The treatment of balance of premium on bonds payable in determining carrying amount of a bond.

Expert Solution & Answer

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Answer 4

Question

Chapter 12, Problem 13RQ

To determine

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.

Premium on bonds payable: It occurs when the bonds are issued at a high price than the face value.

To Explain: Normal balance of premium on bonds payable account.

To determine

To Explain: The treatment of balance of premium on bonds payable in determining carrying amount of a bond.

Expert Solution & Answer

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Answer 5

Chapter 12, Problem 13RQ

To determine

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.

Premium on bonds payable: It occurs when the bonds are issued at a high price than the face value.

To Explain: Normal balance of premium on bonds payable account.

To determine

To Explain: The treatment of balance of premium on bonds payable in determining carrying amount of a bond.

Answer 6

Chapter 12, Problem 13RQ

To determine

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.

Premium on bonds payable: It occurs when the bonds are issued at a high price than the face value.

To Explain: Normal balance of premium on bonds payable account.

Answer 7

Chapter 12, Problem 13RQ

To determine

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.

Premium on bonds payable: It occurs when the bonds are issued at a high price than the face value.

To Explain: Normal balance of premium on bonds payable account.

Answer 8

To determine

To Explain: The treatment of balance of premium on bonds payable in determining carrying amount of a bond.

Answer 9

To determine

To Explain: The treatment of balance of premium on bonds payable in determining carrying amount of a bond.

Answer 10

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Answer 11

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Answer 12

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Answer 13

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 premium on bonds payable occurs when the bonds are issued at a high price than the face value.

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