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Hloo i need your help in these all questions from chapter 14 of financial accounting IIIMG-20200709-WA0009.jpg

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ng cost (a) in percentage terms and (b) in dollars?
QS 14-3 Bond terms and identifications LO2
Match the following terms and phrases by entering the letter of the phrase that best describes each term in the
blank next to the term.
Serial bonds
Debentures
Bond indenture
Secured bonds
Registered bonds
Bearer bonds
Convertible bonds
a. Issuer records the bondholders' names and addresses.
b. Unsecured; backed only by the issuer's general credit standing.
c. Varying maturity dates.
d. Identifies the rights and responsibilities of the issuer and bondholders.
e. Can be exchanged for shares of the issuer's common shares.
f. Unregistered; interest is paid to the person who possesses them.
g. Specific assets of the issuer are mortgaged as collateral.
QS 14-4 Issuance of bond at par, recording interest payment and accrual LO3
On March 1, 2020, JenStar Hydroponics Inc. issued at par an $80,000, 6%, three-year bond. Interest is to be paid
quarterly beginning May 31, 2020. JenStar's year-end is July 31. A partial payment schedule is shown below:
Cash
Carrying
Period Ending
Interest Paid*
Value
Mar. 1/20...
$80,000
May 31/20
$ 1,200
80,000
Aug. 31/20....
1,200
80,000
Aug. 31/22.
1,200
80,000
Nov. 30/22.
1,200
80,000
Feb. 28/23
1,200
80,000
Total ....
$14.400
*$80,000 x 6% x 3/12
a. Record the issuance of the bond on March 1, 2020.
b. Record the payment of interest on May 31, 2020.
c. Record the accrual of bond interest on July 31, 2020, JenStar's year-end, and the subsequent payment
of interest on August 31, 2020.
964
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Exercise 14-2 Bonds issued at par between interest dates LO3
On March 1, 2020, Jagger Metal Corp. issued 9% bonds dated January 1, 2020. The bonds have a $902,000 par
value, mature in 20 years, and pay interest semiannually on June 30 and December 31. The bonds were sold to
investors at their par value plus the two months' interest that had accrued since the original issue date.
a. How much accrued interest was paid to Jagger by the purchasers of these bonds on March 1, 2020?
b. Show the journal entries that Jagger would make to record:
1. the issuance of the bonds on March 1, 2020;
2. the first interest payment on June 30, 2020; and
3. the second interest payment on December 31, 2020.
Exercise 14-3 Bonds issued at par between interest dates LO3
Extra Gold Corporation had a $1,270,000, 6% bond available for issue on September 1, 2020. Interest is to be
paid quarterly beginning November 30. All of the bonds were issued at par on October 1. Prepare the appro-
priate entries for:
a. October 1, 2020
b. November 30, 2020
c. December 31, 2020 (Extra Gold's year-end)
d. February 28, 2021
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Exercise 14-1 Bonds issued at par LO3
On January 1, 2020, British Software Ltd. issued $466,000 of 20-year, 10.5% bonds that pay interest semiannu-
ally on June 30 and December 31. The bonds were sold to investors at their par value.
a. How much interest will British pay to the holders of these bonds every six months?
b. Show the journal entries that British would make to record:
1. the issuance of the bonds on January 1, 2020;
2. the first interest payment on June 30, 2020; and
3. the second interest payment on December 31, 2020.
967

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