It's up to the company to credit back the amount of a discount to the consumer when that customer pays full price for a product on credit terms, then is given a discount after a payment is made. It's considered to be a negative write-off if the company decides not to do this a...
This is the method typically used for bonds sold at a discount or premium. And, as noted earlier, it is often auditors’ preferred method to amortize the discount on bonds payable. This method determines the different amortization amounts that need to be applied to each interest expenditure wit...
calculating loan or mortgage costs. There are special calculators that are designed to calculate this. A person who shops around should be able to find such a calculator for sale at discount stores like Wal-Mart for under $20. There are also amortization calculation tools available for free ...
This process is called bond premium amortization. For the investor, nothing changes as a result of bond premium amortization; bonds pay the coupons and face values laid out in their contracts regardless of whether they are sold at a discount or a premium. The corporation, however, must ...
When a discounted bond is sold, the amount of the bond’s discount must be amortized to interest expense over the life of the bond. When using the effective interest method, thedebitamount in the discount on bonds payable is moved to the interest account. Therefore, the amortization causes ...
Under ERISA (which is the law governing how to calculate a lump sum equivalent of a lifetime monthly income) a corporation is permitted to use certain above-market interest rates or discount rates when making this calculation. The upshot is that Lucent can use a higher than normal interest ...
If you can afford to buy discount points on top of the down payment and closing costs, you’ll lower your monthly mortgage payments and could save lots of money. The key is staying in the home long enough to recoup the prepaid interest. If you sell the home after only a few years, ...
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Explain what a payment discount is. Explain what a credit memo is. What is the meaning of debit and credit in accounting? Does the prepaid insurance account normally require an adjusting entry? Explain. What is the meaning of amortization in accounting?
What type of annuity is this? To make sure that Janet has the skills to do the job, Tom plans to give her a short test. As far as Tom is concerned, the single most important concept in financial planning, whether it be personal or corporate, is discounte ...