7252569-MIdterm-1 (dragged) 22

7252569-MIdterm-1 (dragged) 22 - Kieso Weygandt Warfield...

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Kieso, Weygandt, Warfield, Young, Wiecek Intermediate Accounting, Eighth Canadian Edition 14-6 Amortization. This schedule provides the information necessary for each semi-annual entry for interest and discount or premium amortization. The spreadsheet softwares available from Excel, Lotus or QuattroPro are capable of applying the effective interest method. 14. Unamortized premiums/discounts are added/deducted from bonds payable and presented net in the liability section of the balance sheet. Premiums are added to bonds payable and discounts are deducted from bonds payable. 15. If the interest payment date does not coincide with the financial statement date, the amortized premium or discount should be prorated by the appropriate number of months to arrive at the proper interest expense. 16. Some of the costs associated with issuing bonds include engraving and printing costs, legal and accounting fees, commissions, and promotion expenses. These costs, can be either recognized in net income or added to the carrying value of the debt and amortized
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This note was uploaded on 03/28/2012 for the course ACCTG ACC423 taught by Professor Smith during the Spring '10 term at University of Phoenix.

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