Unformatted text preview: Journal entries a. Issuance of bonds b. Interest payment Dates (Interest expense based on the Effective interest method) c. Year end adjusting entry for accrued interest d. Early Extinguishment of Debt e. Payment of Principal at Maturity 6. Bond Amortization Schedule a. If bond is issued at a Discount i. Interest expense increases over time ii. Amortized discount increases over time iii. Book value or Carrying value increases till it is equal to principal b. If bond is issued at a Premium i. Interest expense decreases over time ii. Amortized premium increases over time iii. Book value or Carrying value decreases till it is equal to principal 7. Financial Statement Disclosures...
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This note was uploaded on 04/16/2011 for the course ACC 311 taught by Professor Charrier during the Fall '08 term at University of Texas.
- Fall '08