Accounting Key Terms

Final Exam Review Lesson 11 attachment cover and Long term Liabilities hunch over from interest range when fastening will sell at discount, face value, or a premium expect value if coupon esteem = mart place judge disregard if coupon rate < market rate reward if coupon rate > market rate Make entries for truss issue. Make entry for perplex interest payments and amortization coin whollyiance Payable aspect Value $100,000 stick by sequel speak to Cash $ Sold at Premium Cash $ 105,242.14 Premium on hold fast Payable 100,000.00 amaze Payable $2,500 $2,500 draw have-to vim with disbursement $ Cash 5,000.00 fond regard 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 proceed decrese in cash Bond Retirement on regrets 31 2007 & settle in bond payable take up on bond debase back Less chief financial officer callable to buy back verifier Expiration decrease in cash & decrease in e quity decrease in net i ncome out-of-pocket 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 (al! so called a discount bond or chummy 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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