Bond issue costs, such as printing fees, legal fees, commissions, etc. are most appropriately accounted for by a. charging them to an expense account in the year the bonds are actually sold. b. debiting them to unamortized bond issue costs, setting them as a deferred charge on the statement of financial position, and amortizing them in a manner similar to bond discount over the life of the bond. c. charging them to an expense account in the year the bonds are originally dated whether or not they are sold in that year. d. considering them in the measurement of the bonds payable.
Bond issue costs, such as printing fees, legal fees, commissions, etc. are most appropriately accounted for by a. charging them to an expense account in the year the bonds are actually sold. b. debiting them to unamortized bond issue costs, setting them as a deferred charge on the statement of financial position, and amortizing them in a manner similar to bond discount over the life of the bond. c. charging them to an expense account in the year the bonds are originally dated whether or not they are sold in that year. d. considering them in the measurement of the bonds payable.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Bond issue costs, such as printing fees, legal fees, commissions, etc. are most appropriately accounted for by
a. charging them to an expense account in the year the bonds are actually sold.
b. debiting them to unamortized bond issue costs, setting them as a deferred charge on the statement of financial position , and amortizing them in a manner similar to bond discount over the life of the bond.
c. charging them to an expense account in the year the bonds are originally dated whether or not they are sold in that year.
d. considering them in the measurement of the bonds payable.
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