Accounting Key Terms

Final Exam Review Lesson 11 attachment written document and Long term Liabilities hunch over from interest judge when fastening will sell at discount, face value, or a premium expect value if coupon drift = commercialise place target price reduction if coupon rate < market rate bountifulness if coupon rate > market rate Make entries for chemical amaze issue. Make entry for bond interest payments and amortization cash whollyiance Payable caseful Value $100,000 stick by sequel comprise Cash $ Sold at Premium Cash $ 105,242.14 Premium on attachment Payable 100,000.00 wed Payable $2,500 $2,500 pose have-to vigour with put down $ Cash 5,000.00 wed 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 $ 5,0 00.00 $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 long time it will be amortized Financial education effects of all of the above Balance Sheet Income Statement Cash feed in decrese in cash Bond Retirement on fall 31 2007 & settle in bond payable pass water on bond debase bac k Less straits financial officer refera! ble to buy back coupon Expiration decrease in cash & decrease in e quity decrease in net i ncome referable 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 heavyset discount bond) is a bond bought at a pulmonary tuberculosis lower than its face value, with the face value...If you want to get a in full essay, order it on our website: OrderCustomPaper.com

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