(The corporation will then amortize the Premium on Bonds Payable to Interest Expense over the life of the bonds.) Definition of Contra Account A contra account is a general ledger account with an account balance that is the opposite of the normal balance for that account classification. For ...
An account payable is an amount owed to a supplier or vendor for goods or services that were provided in advance of payment. However, some people use the term only if the amount is already recorded in the general ledger account Accounts Payable. (Until it is, they refer to the amount as...
What is KPI in accounts payable? What kind of account is a premium on bonds payable? What is another name for accounts receivable? What accounts are in selling expenses in accounting? What type of account does prepaid rent fall under in accounting?
Definition: A discount on bonds payable occurs when the bond’s par value is higher than the issue price or carrying value. The difference between these two numbers is considered the bond discount. In other words, a discount is the difference between the par value and the issue price when ...
If a company issues bonds, the Unamortized Premium on Bonds Payable account (sometimes simply called Bond Premium account) is an adjunct account because itscredit balanceis added to the amount in the Bonds Payable account (in order to determine the book value of the bonds). The unamortized pre...
How is the bonds payable account affected by bond amortization? Define and describe what bonds are to the issuing company. What do you understand by a credit in accounting? Explain the amortization of premium on bonds payable with the help of examples. ...
If the stated interest rate on a bond is less than the market interest rate, it is not uncommon for an investor to pay less than the face value of the bond. In this instance, the difference between the face value and the amount paid is placed in acontra liability account, and the amo...
trading securely. You'll also have access to Binance tools that make it easier than ever to view your trade history, manage auto-investments, view price charts, and make conversions with zero fees.Make an account for free and join millions of traders and investorson the global crypto market....
Cash equivalentsappear asassetson a balance sheet, and include cash along with any liquid investments you can quickly convert into cash. Money in your savings account is considered cash, while the funds in your money market accounts or government bonds are cash equivalents. Generally, cash and ca...
What is a payable-on-death-account? Payable-on-death accounts, or transfer-on-death accounts, refer to any financial account with adesignated beneficiary. The named beneficiary will receive these assets once the account holder dies. You might also hear a POD account referred to as a bank acco...