Accounting / Liabilities:Bonds Payable
The balance of Discount on Bonds Payable is usually reported as a deduction from Bonds Payable in the ____ section of the balance sheet.
long-term liabilities
The bond carrying amount is the face amount plus any unamortized _____ or less any unamortized ______.
premium, discount
The entry to amortize a premium on bonds payable debits ______ and credits _____.
Premium on bonds payable ; credits interest expense
Bond
A form of an interest-bearing note used by corporations to borrow on a long-term basis.
face amount
An amount at which bonds sell if the market rate equals the contract rate.
The entry to amortize a discount on bonds payable debits ____ and credits ____.
Interest expense ; Discount on bonds payable
carrying amount
The balance of the bonds payable account (face amount of the bonds) less any unamortized discount or plus any unamortized premium.
discount
The interest deducted from the maturity value of a note or the excess of the face amount of bonds over their issue price.
contract rate
The periodic interest to be paid on the bonds that is identified in the bond indenture; expressed as a percentage of the face amount of the bond.
market rate of interest
The rate determined from sales and purchases of similar bonds.
future value
The value of an asset or cash at a specified date in the future that is equivalent in value to a specified sum today.
Bond Indenture
Underlying contract between the company issuing bonds and the bondholders.
A balance in Premium on Bonds Payable would be reported as an addition to Bonds Payable in the _____ section of the balance sheet.
long-term liabilities
