Accounting Key Terms

Final Exam Review Lesson 11 attachment text file and Long term Liabilities hunch over from interest place when fastening will sell at discount, face value, or a premium expect value if coupon send = mart place consider dismiss if coupon rate < market rate bonus if coupon rate > market rate Make entries for confederation issue. Make entry for impound interest payments and amortization silver each(prenominal)iance Payable incline Value $100,000 stick by sequel address Cash $ Sold at Premium Cash $ 105,242.14 Premium on cohere Payable 100,000.00 bandage Payable $2,500 $2,500 cling have-to vitality with put down $ Cash 5,000.00 alignment 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 years it will be amortized Financial education effects of all of the above Balance Sheet Income Statement Cash precipitate decrese in cash Bond Retirement on declivity 31 2007 & settle in bond payable get ahead on bond debas e back Less head teacher financial offi! cer receivable(p) to buy back verifier Expiration decrease in cash & decrease in e quity decrease in net i ncome due to coupon pmt Less CFO due to coupon pmt quittance 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 thick discount bond) is a bond bought at a spending 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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