Explanation Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from investors to raise fund for financing the operations. Prepare journal entries to record the issue of bond, interest payments, premium amortizations, amortization of debt issuance costs, repayment of bonds. Date Account titles and Explanation Debit Credit January 1, 2016 Cash $103,604.79 Bonds payable $100,000 Premium on bonds payable (balancing figure) $3,604.79 (To record issuance of bonds payable) January 1, 2016 Deferred debt issuance costs $3,000 Cash $3,000 (To record debt issuance costs) December 31, 2016 Interest expense $12,432.57 Premium on bonds payable $567.43 Cash $13,000.00 (To record payment of interest expenses) December 31, 2016 Interest expense $600 Deferred debt issuance costs (1) $600 (To record amortization costs of debt issuance) December 31, 2017 Interest expense $12,364.48 Premium on bonds payable $635.52 Cash $13,000.00 (To record payment of interest expenses) December 31, 2017 Interest expense $600 Deferred debt issuance costs (1) $600 (To record amortization costs of debt issuance) December 31, 2018 Interest expense $12,288.22 Premium on bonds payable $711.78 Cash $13,000.00 (To record payment of interest expenses) December 31, 2018 Interest expense $600 Deferred debt issuance costs (1) $600 (To record amortization costs of debt issuance) December 31, 2019 Interest expense $12,202...

2nd Edition

ISBN: 9781337268998

Author: PAGACH

Publisher: YUZU

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Question

Chapter 14, Problem 3P

To determine

Prepare journal entries to record the issue of bond, interest payments, premium amortizations, amortization of debt issuance costs, repayment of bonds, and prepare bond interest expense and premium amortization schedule for the bonds.

Expert Solution & Answer

Chapter 14 Solutions

EBK INTERMEDIATE ACCOUNTING: REPORTING

Ch. 14 - Prob. 1GI Ch. 14 - Why does issuing debt result in an income tax...Ch. 14 - What is a bond? Define face value, maturity date,...Ch. 14 - What is the difference between a mortgage bond and...Ch. 14 - Prob. 5GI Ch. 14 - Prob. 6GI Ch. 14 - Prob. 7GI Ch. 14 - Prob. 8GI Ch. 14 - Prob. 9GI Ch. 14 - Prob. 10GI

Ch. 14 - Prob. 11GI Ch. 14 - Prob. 12GI Ch. 14 - Prob. 13GI Ch. 14 - What is a call provision? Why do companies often...Ch. 14 - Prob. 15GI Ch. 14 - When do companies recognize gains and losses from...Ch. 14 - Prob. 17GI Ch. 14 - Prob. 18GI Ch. 14 - Prob. 19GI Ch. 14 - Prob. 20GI Ch. 14 - Prob. 21GI Ch. 14 - Prob. 22GI Ch. 14 - Prob. 23GI Ch. 14 - Prob. 24GI Ch. 14 - Prob. 25GI Ch. 14 - Prob. 26GI Ch. 14 - Prob. 27GI Ch. 14 - Prob. 1MC Ch. 14 - Prob. 2MC Ch. 14 - Prob. 3MC Ch. 14 - Prob. 4MC Ch. 14 - Prob. 5MC Ch. 14 - Prob. 6MC Ch. 14 - Prob. 7MC Ch. 14 - When the cash proceeds from a bond issued with...Ch. 14 - Prob. 9MC Ch. 14 - Prob. 10MC Ch. 14 - Prob. 11MC Ch. 14 - Prob. 12MC Ch. 14 - Prob. 1RE Ch. 14 - Prob. 2RE Ch. 14 - Prob. 3RE Ch. 14 - Prob. 4RE Ch. 14 - Prob. 5RE Ch. 14 - Prob. 6RE Ch. 14 - Prob. 7RE Ch. 14 - Prob. 8RE Ch. 14 - Prob. 9RE Ch. 14 - Prob. 10RE Ch. 14 - Prob. 11RE Ch. 14 - Prob. 12RE Ch. 14 - Prob. 13RE Ch. 14 - Prob. 14RE Ch. 14 - Prob. 15RE Ch. 14 - Prob. 1E Ch. 14 - Prob. 2E Ch. 14 - Prob. 3E Ch. 14 - Recording Bond Issuance On January 1, 2016, Knorr...Ch. 14 - Prob. 5E Ch. 14 - Prob. 6E Ch. 14 - Prob. 7E Ch. 14 - Prob. 8E Ch. 14 - Prob. 9E Ch. 14 - Prob. 10E Ch. 14 - Prob. 11E Ch. 14 - Prob. 12E Ch. 14 - Prob. 13E Ch. 14 - Prob. 14E Ch. 14 - Prob. 15E Ch. 14 - Prob. 16E Ch. 14 - On January 1, 2015, when its 30 par value common...Ch. 14 - Prob. 18E Ch. 14 - On January 1, 2019, Conroe Corporation sold...Ch. 14 - Prob. 20E Ch. 14 - Prob. 21E Ch. 14 - Prob. 22E Ch. 14 - Prob. 23E Ch. 14 - Prob. 24E Ch. 14 - Prob. 25E Ch. 14 - Prob. 26E Ch. 14 - Prob. 27E Ch. 14 - Prob. 28E Ch. 14 - Prob. 29E Ch. 14 - Prob. 30E Ch. 14 - Prob. 31E Ch. 14 - Prob. 1P Ch. 14 - Prob. 2P Ch. 14 - Prob. 3P Ch. 14 - Prob. 4P Ch. 14 - Prob. 5P Ch. 14 - Prob. 6P Ch. 14 - Prob. 7P Ch. 14 - Prob. 8P Ch. 14 - Prob. 9P Ch. 14 - Prob. 10P Ch. 14 - Prob. 11P Ch. 14 - Prob. 12P Ch. 14 - Prob. 13P Ch. 14 - Prob. 14P Ch. 14 - Prob. 15P Ch. 14 - Prob. 16P Ch. 14 - Prob. 1C Ch. 14 - One way for a corporation to accomplish long-term...Ch. 14 - Prob. 3C Ch. 14 - Recording Convertible Debt Zakin Co. recently...Ch. 14 - Prob. 5C Ch. 14 - Long-Term Notes Payable Business transactions...Ch. 14 - Prob. 7C Ch. 14 - Prob. 8C Ch. 14 - Prob. 9C Ch. 14 - You are an accountant for Taos Company, which has...Ch. 14 - Prob. 11C Ch. 14 - Prob. 12C Ch. 14 - Prob. 13C

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