Chapter 14 study guide

Chapter 14 study guide - How will Premium and Bond Payable...

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STUDY GUIDE Chapter 14 Chapter 14 Definitions: Bond Indenture Debenture Bonds Callable Bonds Convertible Bonds Serial Bonds Term Bonds Earnings per share Market Rate=Effective rate= Yield rate – ALL the same meaning Stated rate=contract rate = Rate specified on bond indenture Know journal entries to record issuance of bonds What is journal entry to record the amortization of a premium on bonds payable? What is the "carrying value" of bonds?
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Unformatted text preview: How will Premium and Bond Payable be reported on Financial stmt? Discount? What do you net with? Determine if bond will be issued at premium or discount. (If market is higher than stated then the bond will be issued at discount etc.) PROBLEMS Journal entries Journal entry at bond issuance Journal entry for interest payments during the year Journal entry for amortization under straight line method...
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