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Question: exercises evalnate statements about bonds e1s1 lo 1 nick bosch...

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Exercises Evalnate statements about bonds. E1S.1 (LO 1) Nick Bosch has prepared the following list of statements about bonds. 1. Bonds are a form of interest-bearing notes payable. 2. Secured bonds have specific assets of the issuer pledged as collateral for the bonds. 3. Secured bonds are also known as debenture bonds. 4. A conversion feature may be added to bonds to make them more attractive to bond buvers 5. The rate used to determine the amount of cash interest the borrower pays is called the stated rate. 6. Bond prices are usually quoted as a percentage of the face value of the bond. 7. The present value of a bond is the value at which it should sell in the marketplace. Instructions Identify each statement as true or false. If false, indicate how to correct the statement. E15.2 Prepare entriesforissance ofbonds and payment and accrual of bond interest. (LO 2) On January 1, 2020, Klosterman Company issued S500.000, 10%, 10-year bonds at face value. Interest is payable annually on January 1. Prepare journal entries to record the following. a. The issuance of the bonds. b. The accrual of interest on December 31, 2020. c. The payment of interest on January 1, 202 E 15.4 (LO 2) Laudie Company issued $400,000 of 9%, 10-year bonds on January 1, 2020, at face value. Interest is payable annually on January 1, 2021 Prepare en riesfor bonds issued at face value. Prepare the journal entries to record the following events. a. The issuance of the bonds. b. The accrual of interest on December 31, 2020. c. The payment of interest on January 1, 2021 d. The redemption of bonds at maturity, assuming interest for the last interest period has been paid and recorded

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