The premium on bonds payable account is a contra account that increases the value of the bonds payable account. Continuing with the example, if the bond was issued at a premium of $200, the semiannual amortization using the straight-line method is $20: ($200 / 5) / 2 = $40 / 2 = ...
百度试题 题目Over the term of a bond, the amortization of the premium on bonds payable: 相关知识点: 试题来源: 解析 decreases interest expense.反馈 收藏
greater than the market rate on similar bonds, then the bonds will sell at a premium. This is so because the investors will be ready to pay more for the bonds that yield a high return. The premium on the bonds payable account ...
(1) Debit: cash 636000 Credit: Bonds payable 600000 Premium on bonds payable 36000 (2) Debit: Interest Expenses 28302 Premium on bonds payable 198 Credit: Cash 28500 (3) Debit: Interest Expenses 14137 Premium on bonds payable 113 Credit: Interest payable 14250反馈...
Face or maturity value of the bonds (a credit balance in the account Bonds Payable) Unamortized discount (a debit balance in the contra-liability account Discount on Bonds Payable) Unamortized premium (a credit balance in the adjunct-liability account Premium on Bonds Payable) Unamortized bond issu...
Provide the definitions of a discount bond and premium bond. Give examples. Explain why market interest changes are reflected in bond prices. When does a discount on bonds payable occur? Explain. Why is it important to understand the bond market?
结果1 题目 The balance in the discount on bonds payable account would usually be reported in the balance sheet in the: A. Current liabilities section B. Non-current assets section C. Investments section D. Long-term liabilities section 相关知识点: 试题来源: 解析 D 反馈 收藏 ...
Determining interest by allocating the discount (or premium) on a straight-line basis is NOT permitted under IFRS, although it is allowed under US GAAP The effective interest is calculated each period as the effective interest rate times the amount of the debt outstanding during the interest perio...
百度试题 结果1 题目:The amortization of a premium on bonds payable decreases bond interest expense. T、对 F、错相关知识点: 试题来源: 解析 答案:T 反馈 收藏
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