· After reading the information on accounting for long-term debt in Chapter 14 from your Intermediate Accounting text, use a Word or an Excel document to address the following problems:o P 14-1, Determining the Price of Bonds; Discount and Premium; Issuer and Investor, page 817.§ This problem tests your knowledge of bond issuance pricing.o P 14-10, Notes Exchanged for Assets; Unknown Effective Rate, page 819.§ This problem tests your knowledge of exchanging notes for assets.o P 14-21, Concepts; Terminology, page 822.§ This problem tests your knowledge of the concepts and terminology associated with long-term debt instruments. List each of the numbers from list A, followed by the correct matching letter from list B. No calculations are necessary for this problem.P 14–1Determining the price of bonds; discount and premium; issuer and investor•u2002LO14–2On January 1, 2018, Instaform, Inc., issued 10% bonds with a face amount of $50 million, dated January 1. The bonds mature in 2037 (20 years). The market yield for bonds of similar risk and maturity is 12%. Interest is paid semiannually.Required:1. Determine the price of the bonds at January 1, 2018, and prepare the journal entry to record their issuance by Instaform.2. Assume the market rate was 9%. Determine the price of the bonds at January 1, 2018, and prepare the journal entry to record their issuance by Instaform.3. Assume Broadcourt Electronics purchased the entire issue in a private placement of the bonds. Using the data in requirement 2, prepare the journal entry to record the purchase by Broadcourt.P 14–10Notes exchanged for assets; unknown effective rate•u2002LO14–3At the beginning of the year, Lambert Motors issued the three notes described below. Interest is paid at year-end.1. The company issued a two-year, 12%, $600,000 note in exchange for a tract of land. The current market rate of interest is 12%.2. Lambert acquired some office equipment with a fair value of $94,643 by issuing a one-year, $100,000 note. The stated interest on the note is 6%.3. The company purchased a building by issuing a three-year installment note. The note is to be repaid in equal installments of $1 million per year beginning one year hence. The current market rate of interest is 12%.P 14–21Concepts; terminology•u2002LO14–1 through LO14–5Listed below are several terms and phrases associated with long-term debt. Pair each item from List A with the item from List B (by letter) that is most appropriately associated with it.List AList B1. Effective rate times balance2. Promises made to bondholders3. Present value of interest plus present value of principal4. Call feature5. Debt issue costs6. Market rate higher than stated rate7. Coupon bonds8. Convertible bonds9. Market rate less than stated rate10. Stated rate times face amount11. Registered bonds12. Debenture bond13. Mortgage bond14. Materiality concept15. Subordinated debentureStraight-line methodDiscountLiquidation payments after other claims satisfiedName of owner not registeredPremiumChecks are mailed directlyNo specific assets pledgedBond indentureBacked by a lienInterest expenseMay become stockLegal, accounting, printingProtection against falling ratesPeriodic cash paymentsBond price
The objective of this assignment is to enable you to demonstrate your understanding of federal and state court authority, structures, and functions. Write an
The objective of this assignment is to enable you to demonstrate your understanding of federal and state court authority, structures, and functions. Write an essay of 3-5 pages in which you respond to