Accounting Key Terms

Final Exam Review Lesson 11 attachment written document and Long term Liabilities hunch over from interest evaluate when fastening will sell at discount, face value, or a premium expect value if coupon account = marketplace place target dissolve if coupon rate < market rate all(prenominal)owance if coupon rate > market rate Make entries for cohere issue. Make entry for bond interest payments and amortization immediate payment alliance Payable search Value $100,000 stick by sequel salute Cash $ Sold at Premium Cash $ 105,242.14 Premium on stay put Payable 100,000.00 bail Payable $2,500 $2,500 alignment have-to vitality with expenditure $ Cash 5,000.00 constipate Issue Expense Bond Issue Cost $416.67 Bond Issue Expense Bond Issue Cost 5,242.14 100,000.00 $2,500 $2,500 Bond Interest Expense $ Premium on Bonds Payable $ 5,000.00 Cash $416.67 $ Bond Issue Cost Cash $ $ 4,209. 69 790.31 $ 5,000.00 $416.67 $416.67 Sold at Discount Cash $ 95,082.68 Discount on Bond Payable $ 4,917.32 Bond Payable $ 100,000.00 Bond Issue Cost Cash $2,500 $2,500 Bond Interest Expense $ 5,704.96 Discount on Bond Payable $ Cash $ 704.96 5,000.00 Bond Issue Expense Bond Issue Cost $416.67 $416.

67 Amortization is the bond issue personify divided the days it will be amortized Financial education effects of all of the above Balance Sheet Income Statement Cash race decrese in cash Bond Retirement on declination 31 2007 & settle in bond payable pu cker on bond debase back Less chief fi! nancial officer out-of-pocket to buy back verifier Expiration decrease in cash & decrease in e quity decrease in net i ncome payable to coupon pmt Less CFO due to coupon pmt refund of the principal decrese in cash & decrease in bond payable N/A Less CFO due to principal repayment CFO = cash from operating activities Definitions of zero-coupon bonds A zero-coupon bond (also called a discount bond or thickset discount bond) is a bond bought at a expenditure lower than its face value, with the face value...If you want to get a in full essay, order it on our website: BestEssayCheap.com

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