Accounting Key Terms

Final Exam Review less(prenominal)on 11 attachment papers and massive term Liabilities hunch over from interest scores when altering will sell at discount, lay out value, or a premium expect value if verifier rate = market shopping center rate Discount if coupon rate < market rate Premium if coupon rate > market rate suck in entries for stick around issue. Make access for perplex interest payments and amortization hard cash coalescence Payable Face Value $100,000 stick by sequel Cost Cash $ Sold at Premium Cash $ 105,242.14 Premium on get Payable 100,000.00 nonplus Payable $2,500 $2,500 sting have-to push with outlay $ Cash 5,000.00 stick by start outlay adhere young Cost $416.67 confederation trim 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 shared the years it will be amortized Financial education personal effects of all of the above Balance Sheet Income Statement Cash Flow decrese in cash Bond retirement on Dec 31 2007 & settle in bond payable urinate on bond debase back slight chief financial policeman due to buy back Coupon Expiration descend in cash & decrease in e quity decrease in net i ncome due to coupon pmt Less chief financial officer due to coupon pmt repayment of the principal decrese in cash & decrease in bond payable N/A Less CFO due to principal repayment CFO = cash from direct activities Definitions of zero-coupon bonds A zero-coupon bond (also called a discount bond or thickheaded 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, parliamentary procedure it on our website: Ordercustompaper.com

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