The combination of the unamortized debit balance in Discount on Bonds Payable, the unamortized debit balance in Bond Issue Costs, and the $10,000,000 credit balance in Bonds Payable is referred to as the book value (or carrying value) of the bonds payable. Related Questions Where is the pre...
The seller will usually record the $9 cash discount with a debit to the account Sales Discounts. The buyer will record the $9 savings as a credit to Purchase Discounts or as a reduction to the cost recorded in inventory. My dentist offers a 5% cash discount if the dental fee is paid ...
There is a loss on redemption of bonds when bonds are redeemed above carrying value. True or False The balance in the Bonds Payable account is a credit of $74,000. The balance in the Discount on Bonds Payable account is a debit of $2,450. The bond's ...
And when accounting for bond amortization, you will debit the interest expense side and credit the discount on bonds payable side if the bonds payable experienced a discount. As a result, your overall interest expense will increase, while the net book value of the bonds payable account will dec...
Because the bond discount has a debit balance, a credit to it reduces it balance and because the bond discount is a contra-account to the bond payables account, the carrying value of bond issued at discount increased after bond discount amortization. Bond carrying value after the first payment...
A discount rate is a rate provided by the seller which serves as the basis on the amount of discount, or deduction in the selling price, to be given to the customers.Answer and Explanation: If the perpetual inventory system is used: Inventory xx Accounts Payable xx To record the ...
The entry to record the amortization of the discount includes a (Points: 6) debit to Available-for-Sale Securities. debit to the discount account. debit to Interest Revenue. none of these. 34. APB Opinion No. 21 specifies that, regarding the amortization of a premium or discount on a ...