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...
Unamortized bond issue costs (a debit balance in the contra-liability account Bond Issue Costs) It’s important that the discount, premium, and issue costs have been amortized properly up to the moment when the book value of the bonds is needed. Example of Book Value of Bonds Payable Assume...
What kind of account is a discount on bonds payable? What kind of account is a premium on bonds payable? What are accrued liabilities? What exactly are "accounts receivable" and "accounts payable"? What is the difference between them?
What is a single step income statement in accounting? What is account book value? What goes on an income statement? How does a non-profit balance its accounts? What kind of account is a premium on bonds payable? What is another name for an income statement?
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...
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Pay for your new policy and get back on the road. Insurers may require you to pay the entire premium upfront — either six or 12 months’ worth. Once your coverage is in place, the insurer will file the SR22 insurance form with your state’s traffic authorities. You might find that ...
If equity is negative, then the owners or shareholders have no equity in the business, and the company is considered to be “in the red.” Negative equity is usually a bad sign. It could mean the company is taking on too much debt. It could also signal that the company is paying out...
Personal assets can include a home, land, financial securities, jewelry, artwork, gold and silver, or your checking account. Business assets can include motor vehicles, buildings, machinery, equipment, cash, and accounts receivable as well as intangibles like patents and copyrights. What Are Non-...
If the current market interest rate for the bonds is 4%, the cost after the income tax savings may be only 3%. Related Questions What is premium on bonds payable? What is discount on bonds payable? What is the book value of bonds payable? How do you record bonds that are issued?