Financial Accounting, Student Value Edition (5th Edition)
5th Edition
ISBN: 9780134728520
Author: Robert Kemp, Jeffrey Waybright
Publisher: PEARSON
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Textbook Question
Chapter 9, Problem 7SE
Bond terms (Learning Objective 5) 5-10 min.
Match the following terms with the correct definition.
| 1. Bonds that all mature at the same time | a. Convertible bonds |
| 2. Interest rate investors are expecting to receive for similar bonds of equal risk | b. Premium on bond |
| 3. Unsecured bonds backed only by the good faith of the borrower | c. Callable bonds |
| 4. Amount of a |
d. Debentures |
| 5. Bonds that may be converted into the common stock of the issuing company at the option of the investor | e. Term bonds |
| 6. Amount of a bond's maturity value over its issue price | f. Serial bonds |
| 7. Interest rate that determines the amount of cash interest the borrower pays and the investor receives | g. Discount on bond |
| S. Bonds in the same bond issuance that mature at different times | h. Stated interest rate |
| 9. Bonds that the issuer may call or pay off at a specified price before maturity | i. Market interest rate |
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Terms related to long-term debt.
Place the letter of the best matching phrase before each word.
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Indenture
6.
Times Interest Earned Ratio
Refunding
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Mortgage
3.
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Premium on Bonds
Carrying Value
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4.
9.
Reacquisition Price
5.
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Market Rate
Requires that bond discount be reported in the balance sheet as a direct deduction from the face of the bond.
b.
a.
Rate set by party issuing the bonds which appears on the bond instrument.
The interest paid each period is the effective interest at date of issuance.
d.
C.
Rate of interest actually earned by the bondholders.
Results when bonds are sold below par.
f.
e.
Results when bonds are sold above par.
The replacement of an existing bond issuance with a new one.
g.
h.
Price paid by issuing corporation for its own bonds.
Book value of bonds at any given date.
Ratio of current assets to current liabilities.
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1. Indicates the company's ability to meet interest payments as…
Chapter 10-Bond Vocabulary -
Match each of the following terms with appropriate definitions:
A. Bond Indenture
B. Effective Interest Method
C. Secured Bond
D. Sinking Fund Bond
E. Registered Bond
F. Market Rate
G. Bearer Bond
H. Convertible Bond
I. Debenture
J. Serial Bond
lo sgs
1. Records and tracks the bondholders' names
or zabing
2. Is unsecured; backed only by the issuer's credit standing
3. Has varying maturity dates for amounts owed.
4. The interest rate that borrowers are willing to pay and that lenders are willing to
accept for a particular bond based on its risk
5. Identifies rights and responsibilities of the issuer and the bondholders
6. Can be exchanged for shares of the issuer's stock
7. Is unregistered; interest is paid to whoever possesses them
8. An accounting method that allocates interest expense over the bonds' life in a
way that yields a constant rate of interest
9. Maintains a separate asset account from which bondholders are paid at maturity
10. Pledges specific…
On the maturity date of a bond investment, the journal entry includes ________.
A.
a debit to Cash and a credit to Held-to-Maturity Debt Investments
B.
a debit to the Interest Revenue and a credit to Cash
C.
recording a gain or loss on disposition at maturity
D.
a debit to Long-term Investments and a credit to Cash
Chapter 9 Solutions
Financial Accounting, Student Value Edition (5th Edition)
Ch. 9.A - Calculate employee payroll (Learning Objective 8)...Ch. 9.A - Calculate net pay (Learning Objective 8) 5-10 min....Ch. 9.A - Employer payroll costs (Learning Objective 8) 5-10...Ch. 9.A - Prob. 4AECh. 9.A - Prob. 5AECh. 9.A - Prob. 6AECh. 9.A - Prob. 7BECh. 9.A - Prob. 8BECh. 9.A - Calculating gross and net pay (Learning Objective...Ch. 9.A - Calculating gross and net pay (Learning Objective...
Ch. 9.A - Calculating gross and net pay (Learning Objective...Ch. 9 - Prob. 1DQCh. 9 - Prob. 2DQCh. 9 - Prob. 3DQCh. 9 - Prob. 4DQCh. 9 - What is the distinguishing feature of the...Ch. 9 - Prob. 6DQCh. 9 - Will interest expense be more than, less than, or...Ch. 9 - Prob. 8DQCh. 9 - What are the differences between an operating...Ch. 9 - Prob. 10DQCh. 9 - Known liabilities of uncertain amounts should be...Ch. 9 - Prob. 2SCCh. 9 - Prob. 3SCCh. 9 - Prob. 4SCCh. 9 - Which term is used to describe an unsecured bond?...Ch. 9 - Prob. 6SCCh. 9 - Plavix Corporations bonds payable carry a stated...Ch. 9 - Prob. 8SCCh. 9 - Martin s bonds pay interest semiannually on July 1...Ch. 9 - Prob. 10SCCh. 9 - Prob. 11SCCh. 9 - Prob. 12SCCh. 9 - Prob. 1SECh. 9 - Prob. 2SECh. 9 - Prob. 3SECh. 9 - Prob. 4SECh. 9 - Prob. 5SECh. 9 - Prob. 6SECh. 9 - Bond terms (Learning Objective 5) 5-10 min. Match...Ch. 9 - Determining the issue price for bonds (Learning...Ch. 9 - Prob. 9SECh. 9 - Prob. 10SECh. 9 - Accounting for bonds (Learning Objective 5) 15-20...Ch. 9 - Prob. 12SECh. 9 - Prob. 13SECh. 9 - Prob. 14SECh. 9 - Prob. 15SECh. 9 - Prob. 16AECh. 9 - Accounting for notes payable (Learning Objective...Ch. 9 - Prob. 18AECh. 9 - Prob. 19AECh. 9 - Prob. 20AECh. 9 - Prob. 21AECh. 9 - Prob. 22AECh. 9 - Prob. 23AECh. 9 - Classifying notes payable as current or long-term...Ch. 9 - Disclosing liabilities on a balance sheet...Ch. 9 - Prob. 26AECh. 9 - Prob. 27BECh. 9 - Prob. 28BECh. 9 - Prob. 29BECh. 9 - Prob. 30BECh. 9 - Prob. 31BECh. 9 - Prob. 32BECh. 9 - Prob. 33BECh. 9 - Prob. 34BECh. 9 - Classifying notes payable as current or long-term...Ch. 9 - Prob. 36BECh. 9 - Prob. 37BECh. 9 - Prob. 38APCh. 9 - Prob. 39APCh. 9 - Prob. 40APCh. 9 - Prob. 41APCh. 9 - Prob. 42APCh. 9 - Prob. 43APCh. 9 - Prob. 44APCh. 9 - Prob. 45BPCh. 9 - Prob. 46BPCh. 9 - Prob. 47BPCh. 9 - Prob. 48BPCh. 9 - Prob. 49BPCh. 9 - Prob. 50BPCh. 9 - Prob. 51BPCh. 9 - Prob. 1CECh. 9 - Prob. 1CPCh. 9 - Prob. 1CFSAPCh. 9 - Prob. 1EIACh. 9 - Case 2. Sherry Talbot, the CEO of Talbot...Ch. 9 - Prob. 1FACh. 9 - Prob. 1IACh. 9 - Small-Business Analysis Purpose: To help you...Ch. 9 - Prob. 1WC
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