Acct final
A discount on Bonds payable account is shown on the balance sheet as
a contra liablity account that reduces the carrying value of the bonds
The current portion of long term debt would appear on the balance sheet as
current liability
If bonds were initially issued at a discount, the carrying value of the bond on the issuer's books will
decrease as the bonds approach the maturity date
total stockholder equity includes 50,000 of common stock
100,000
On july 1st the board of directors
100000 debit to retained earnings
Newell Inc
50,000
Grand torino
555,000
The premium on bonds payable account is shown on the balance sheet as
A reduction of an expense
Bolton Heating
Increase of 48000
Kaplan group
Intrest expense Discount Cash
When a corporation pays a previously declared cash dividend which of the following is true
Liabilities decrease
Bonds sell at a premium when
Market rate of intrest is less than the stated rate of intrest at the time of issue
When a corporation declares a cash dividend which of the following is true.
Stockholder equity decreases
A convertible bond
The bond holder can convert the bond into common stock at a future time.
Par value represents the:
arbitrary amount that establishes a minimum price for the stock when it is first issued
A long term liability would appear on the balance sheet as a
long term liability
Issued shares represent the
maximum number of shares that can be sold by the cooperation
Treasury shares represent the
number of previously issued shares that have been repurchased by the corporation.
Under the effective intrest method the cash paid on each intrest payment date will
remain constant regardless of the issuance price
Lakeview entertainment
stockholder equity inreases 15,000
When bonds are issued by a company the accounting entry shows an
Increase in assets and increase in liabilities