会计·第14ç« ä&fr

会计·第14ç« ä&fr

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Unformatted text preview: 1 14 1&& 1&L * &&&&&&&& Question 1: Score 4/4 Your response Quick Study 14-6: Bond retirement by call option L.O. P4 On July 1, 2009, Teller Company exercises a $4,000 call option (plus par value) on its outstanding bonds that have a carrying value of $208,000 and par value of $200,000. The company exercises the call option after the semiannual interest is paid on June 30, 2009. Record the entry to retire the bonds. (Omit the "$" sign in your response.) Date General Journal Debit Credit July 1 2009 Bonds Payable (13%) 200,000 (13%) Premium on Bonds Payable (13%) 8,000 (13%) Gain on Retirement of Bonds (13%) 4,000 (13%) Cash (13%) 204,000 (13%) Question 2: Score 3/3 Your response Quick Study 14-7: Bond retirement by stock conversion L.O. P4 On January 1, 2009, the $1,000,000 par value bonds of Staten Company with a carrying value of $1,000,000 are converted to 500,000 shares of $1.00 par value common stock. Record the entry for the conversion of the bonds. (Omit the "$" sign in your response.) Date General Journal Debit Credit Jan. 1 2009 Bonds Payable (17%) 1,000,000 (17%) Common Stock (17%) 500,000 (17%) Paid-In Capital in Excess of Par Value (17%) 500,000 (17%) Question 3: Score 15/15 Your response Problem 14-1A: Computing bond price and recording issuance L.O. P1, P2, P3 Harvard Research issues bonds dated January 1, 2009, that pay interest semiannually on June 30 and December 31. The bonds have a $45,000 par value and an annual contract rate of 6%, and they mature in six years. Required: For each of the following three separate situations, (a) determine the bonds issue price on January 1, 2009, and (b) prepare the journal entry to record their issuance. 1. The market rate at the date of issuance is 4%. Use the present value Table B.1 and Table B.3 . (Round your table values to 4 decimal places. Round your answers to the nearest dollar amount. Omit the "$" sign in your response.) ( a ) Cash Flow Amount Table Value Present Value Par value...
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This note was uploaded on 11/07/2010 for the course BBA 1023 taught by Professor Luoyi during the Spring '10 term at University of Macau.

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会计·第14ç« ä&fr

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