Loading...

Messages

Proposals

Stuck in your homework and missing deadline? Get urgent help in $10/Page with 24 hours deadline

Get Urgent Writing Help In Your Essays, Assignments, Homeworks, Dissertation, Thesis Or Coursework & Achieve A+ Grades.

Privacy Guaranteed - 100% Plagiarism Free Writing - Free Turnitin Report - Professional And Experienced Writers - 24/7 Online Support

Patient centered approaches to nursing

15/12/2021 Client: muhammad11 Deadline: 2 Day

CHAPTER 14
Financing Liabilities: Bonds and LT Notes Payable

SOLUTIONS TO EXERCISES

E14-1 Determining the Proceeds from Bond Issues.

Madison Corporation is authorized to issue $500,000 of 5-year bonds dated June 30, 2016, with a stated rate of interest of 11%. Interest on the bonds is payable semiannually, and the bonds are sold on June 30, 2016.

Required: Determine the proceeds that the company will receive if it sells (1) the bonds to yield 12% and (2) the bonds to yield 10%.

1. (Factors from Tables 3 and 4 of the TVM Module)

n = 10, i = 0.06

PV of Principal ($500,000 0.558395) = $279,179.50

PV of Interest + ($27,500 7.360087) = 202,402.39

$481,581.89

OMIT 2. (Factors from Tables 3 and 4 of the TVM Module)

n = 10, i = 0.05

PV of Principal ($500,000 0.613913) = $306,956.50

PV of Interest + ($27,500 7.721735) = 212,347.71

$519,304.21

E14-3 Recording Bond Issue and Interest Payments Burris Corporation is authorized to issue $800,000 of 9% bonds. Interest on the bonds is payable semiannually; the bonds are dated January 1, 2016, and are due December 31, 2020.
Required: Prepare the journal entries to record the following:

a.

April 1, 2016

Sold the bonds at par (100) plus accrued interest

b.

June 30, 2016

First interest payment

c.

December 31, 2016

Second interest payment

2016

a. Apr. 1 Cash 818,000

Interest Expense ($800,000 0.09 3/12)* 18,000

Bonds Payable 800,000

*Alternatively, Interest Payable could be credited.

b. June 30 Interest Expense ($800,000 0.09 6/12)* 36,000

Cash 36,000

*Alternatively, if Interest Payable was credited on April 1, 2016, Interest Expense would be debited for $18,000, and Interest Payable would be debited for $18,000.

c. Dec. 31 Interest Expense ($800,000 0.09 6/12) 36,000

Cash 36,000

E14-5 Straight-Line Premium Amortization On January 1, 2016, Hackman Corporation issued $1 million face value 12% bonds dated January 1, 2016, for $1,023,000. The bonds pay interest semiannually on June 30 and December 31 and are due December 31, 2020. Hackman uses the straight-line amortization method.

Required: Record the issuance of the bonds and the first two interest payments.

2016

Jan. 1 Cash 1,023,000

Bonds Payable 1,000,000

Premium on Bonds Payable 23,000

June 30 Interest Expense 57,700

Premium on Bonds Payable [($23,000

60 months) 6 months] 2,300

Cash ($1,000,000 0.12 6/12) 60,000

Dec. 31 Interest Expense 57,700

Premium on Bonds Payable [($23,000

60 months) 6 months] 2,300

Cash ($1,000,000 0.12 6/12) 60,000

OMIT E14-6 Straight-Line Discount Amortization Bryan Company issued $500,000 of 10% face value bonds on January 1, 2016, for $486,000. The bonds are due December 31, 2018, and pay interest semiannually on June 30 and December 31. Bryan uses the straight-line amortization method.
Required: Prepare the journal entries to record the issuance of the bonds and the first two interest payments.

2016

Jan. 1 Cash 486,000

Discount on Bonds Payable 14,000

Bonds Payable 500,000

June 30 Interest Expense 27,333.33

and Discount on Bonds Payable [($14,000

Dec. 31 36 months) 6 months] 2,333.33

Cash ($500,000 0.10 6/12) 25,000.00

E14-7 Effective Interest Discount Amortization Chowan Corporation issued $100,000 of 10% bonds dated January 1, 2016, for $96,832.72 on January 1, 2016. The bonds are due December 31, 2019, were issued to yield 11%, and pay interest semiannually on June 30 and December 31. Chowan uses the effective interest method of amortization.
Required: Prepare the journal entries to record the issue of the bonds on Jan. 1, 2016, and the interest payments on June 30, 2016, Dec. 31, 2016, and June 30, 2017. In addition, prepare an amortization schedule for the bonds through June 30, 2017.

2016

Jan. 1 Cash 96,832.72

Discount on Bonds Payable 3,167.28

Bonds Payable 100,000.00

CHOWAN CORPORATION

Bond Interest Expense and

Discount Amortization Schedule (Partial)

Effective Interest Method

10% Bonds Sold to Yield 11%

Interest Unamortized

Homework is Completed By:

Writer Writer Name Amount Client Comments & Rating
Instant Homework Helper

ONLINE

Instant Homework Helper

$36

She helped me in last minute in a very reasonable price. She is a lifesaver, I got A+ grade in my homework, I will surely hire her again for my next assignments, Thumbs Up!

Order & Get This Solution Within 3 Hours in $25/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 3 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 6 Hours in $20/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 6 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 12 Hours in $15/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 12 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

6 writers have sent their proposals to do this homework:

24/7 Assignment Help
Assignment Guru
Homework Guru
Accounting Homework Help
Assignments Hut
Instant Assignment Writer
Writer Writer Name Offer Chat
24/7 Assignment Help

ONLINE

24/7 Assignment Help

I will provide you with the well organized and well research papers from different primary and secondary sources will write the content that will support your points.

$71 Chat With Writer
Assignment Guru

ONLINE

Assignment Guru

I have read your project details and I can provide you QUALITY WORK within your given timeline and budget.

$64 Chat With Writer
Homework Guru

ONLINE

Homework Guru

I reckon that I can perfectly carry this project for you! I am a research writer and have been writing academic papers, business reports, plans, literature review, reports and others for the past 1 decade.

$61 Chat With Writer
Accounting Homework Help

ONLINE

Accounting Homework Help

I can assist you in plagiarism free writing as I have already done several related projects of writing. I have a master qualification with 5 years’ experience in; Essay Writing, Case Study Writing, Report Writing.

$51 Chat With Writer
Assignments Hut

ONLINE

Assignments Hut

I am a PhD writer with 10 years of experience. I will be delivering high-quality, plagiarism-free work to you in the minimum amount of time. Waiting for your message.

$60 Chat With Writer
Instant Assignment Writer

ONLINE

Instant Assignment Writer

As per my knowledge I can assist you in writing a perfect Planning, Marketing Research, Business Pitches, Business Proposals, Business Feasibility Reports and Content within your given deadline and budget.

$73 Chat With Writer

Let our expert academic writers to help you in achieving a+ grades in your homework, assignment, quiz or exam.

Similar Homework Questions

Barcarolle trinity grade 4 - Where are you going where have you been pdf - Looking for richard techniques - Use of laplace transform in real life - Swarovski crystal size chart - Agility skill - 10 adam 10 police code - Cell poems for science - Safe direction pty ltd - Cia triad authentication and nonrepudiation - Non marketing controlled information source - What is cybertechnology - Al si phase diagram - Leeds dental institute oral surgery - Assignment - Riot shield parts shadows of evil - Nurs521promptw8 - Fantastic in film & television must have saw the movie "Wizard of OZ" 1939 - Biggest loser at work - Art - Great gatsby chapter 3 summary - Discussion response - Drones - Why america is self segregating by danah boyd - New york grid system - Misleading and deceptive conduct examples - 102 mein st hendra - Greek vs roman theatre - Societal marketing concept of nike - Internal alignment definition - Sjkcareers - The things they carried setting importance - Turabian book review - Microsoft smart card base components windows 7 - Dir sir madam cover letter - 2013 pdhpe hsc exam - Is the world flat or spiky - Listen and indicate whether the questions and responses are lógico or ilógico. - Write a research Question and Conduct Premilinary Research - 3 types of cone cells - SQL ( fund of data systems) - Tutorial questions 3-Marketing - Draft Research Paper - 03.05 getting the most for your money - Aged care documentation examples - Fair work information statement - Why does morrie want to be cremated - Indian merchant chamber courses - How to run discriminant analysis in spss - Shell canada fuels productivity with erp - Medical technologist resume philippines - Activitati si responsabilitati ospatar - Ideo case study answers - Irresponsible news reporting - Group f/64 and Imogen Cunningham - Help me - Philosophy in the tragic age of the greeks - Green zones moreton bay - Kokhono megh kokhono brishti - Ness 8 zone alarm system - Martingale asset management case study solution - Pursuit Of Happiness - Wk 5, HCS/341: DQ - Is cache a recognised qualification - Mgp 10 span tables - Exw price stands for - Week 7 Discussion Prompt #1 and #2 - Two assignments due today before 11:59 pm - Air meals is a company that prepares - Dr sean tan crows nest - Bus 599 assignment 1 - Research paper - Discussion - Surveymonkey change primary admin - Bucklow trafford riding club - American government - West end kennels stowmarket - Introduction to health care management buchbinder pdf - Multiple years of practical training at same education level - Netflix ceo reed hastings faced harsh criticism for which of the following reasons? - Urgent - Stockholders equity section of balance sheet - Letter 2: Negative Message - Introduction to educational research suter - 1 watt to dbm - Traveling electromagnetic wave mastering physics - How to quote job reference number in cover letter - John fourie chubby chick - Market share analysis company net applications monitors - Maruca holdings deception bay - A circus performer stretches a tightrope - Why phones should not be allowed in school - Research Paper Big Data and Business Intelligence - W6 - An assembly line is to be designed to operate 7 - Due tomorrow - Swansea uni bay campus address - 1244 toorak road camberwell - Woody guthrie dust bowl ballads lyrics - What is morrisby testing