How are the bonds issued, what is the appropriate journal entry? Provide example for issuing bonds. How do we determine the present value of a bond when market rate differs from its contract rate? How do we record the interest payment (provide examples for both premium and discount amortization), using the effective interest method? What is the difference between the effective interest method and the straight line method when amortizing either a discount or a premium? Cite and give credit to the author that you are citing.

Q: How do you calculate the current value (price) of a bond? Explain through the formula and its…

A: Bond is a debt fund  that is issued in connection with borrowing from outside. It implies that the…

Q: How would the balance of the discount on bonds payable account usually be reported in the balance…

A: Definition:   Bonds payable account: The account which holds the total liability to be paid to the…

Q: Explain how each of the columns in an amortization schedule is calculated, assuming the bonds are…

A: Amortization is the process of converting long term loans or bonds into series of periodic payment.…

Q: Which of the following would describe a callable bond?

A: Bonds: Bonds are the debt obligations of a business on which it requires to pay regular interest to…

Q: How are the bonds issued, what is the appropriate journal entry Provide example for issuing bonds

A: Bonds payable is a long-term liability in which the bonds has been issued in lieu of amount borrowed…

Q: How to record bonds selling at discount, premium, and at par. Why are bonds recorded at discount,…

A: Bonds are debts instruments issued by corporates. Bonds are issued at par, premium and discount.…

Q: Describe the repayment process for both a term loan and ab

A: Term loan and bonds are two different types of raising money.

Q: The journal entry to record the issuance of bonds at a premium consists of a debit to Cash, a debit…

A: Issue of bonds is one of source of finance being used in business. Under this, long term or short…

Q: Explain bonds issue between interest dates with examples.

A: Bonds are typically issued at interest dates in order to smoothen the flow of interest and…

Q: Which one of the below most likely respresents the periodic receipts of interest? O the coupon rate.…

A: Periodic payments means fixed amount paid regularly to the investor. Example interest amount on…

Q: How do you calculate the price of bonds if you know their par value, contract rate, and market rate

A: This question dells with  a bond's price if you know its par value, contract rate, and market rate

Q: How should discount on bonds payable be reported on the financial statements? Premium on bonds…

A: Concept: A premium on bonds occurs if, the bonds are issued at a high price than the face value. On…

Q: In addition to the theory of bonds, your book talks about Installment Notes. What is an Installment…

A: Bonds are paid interest each year and remaining amount that face value is paid on MATURITY.

Q: what's the difference between retirement of bond and repayment to their bond holder( assume the…

A: The answer for the theory question on difference between retirement of bond and repayment of bond…

Q: How does mortgage pay-through bond (MPTB) resemble a mortgage-backed bond (MBB)? How does it differ?

A: Introduction: The mortgage pay-through bonds are also called as hybrid securities. These bonds have…

Q: he method used to pay interest depends on whether the bonds are: Multiple

A: Bonds are financial securities that reflect a type of debt or borrowing between two parties: the…

Q: A debit to Discount on Bonds Payable would most likely be possible on which of the situations?…

A: The bonds are issued at discount when market rate is higher than the coupon rate of interest.

Q: what is the difference between bonds payable and accounts payable? explain your answer?

A: Bond payable and account payable both are liabilities of the company , which is to be paid in future…

Q: What is interest rate risk, and how does it relate to callable bonds? Explain using an example of…

A: This question discusses callable bonds.

Q: Journalize the above transactions, including the adjusting entry for the accrual of interest on…

A: Journal entry is the first stage of accounting process. Journal entry used to record business…

Q: Credit scoring is a process used to   Multiple Choice   determine what interest rate to charge a…

A: Credit score : it is a number between 300 - 850 which depicts consumers creditworthiness.

Q: Discount on note receivable is: Group of answer choices the amount of total interest earned as of…

A: Discounting on bills receivable or note receivable means pledging to pay before the maturity date.…

Q: The market interest rate.... Select the word list below: - is the contractual interest rate used to…

A: The market interest rate refers to the rate of return that is prevalent in general for all…

Q: Define the following Bond related terms: Issue Date Face Amount Term Contract Rate Payment Frequency…

A: Bonds refers to the security issued by corporate companies or government as and when they need to…

Q: Explain Bonds Issued Between Interest Dates.

A: Bond: It can be defined as the instrument that carries a fixed rate of income and represents the…

Q: Explain how mortgage-backed securities, collateralised debt obligations and credit default swaps are…

A: Mortgage backed securities: Mortgage is a loan secured by some real estate property or commericial…

Q: Bonds which are collateralized by specific assets in the event the borrowing company defaults on…

A: Bonds are a form of liability for the business. These can be issued for short term or long term.…

Q: If an investor is concerned about interest risk, which of the following bonds should a registered…

A: Bonds are fixed-income securities that represent loans made by investors to borrowers, typically…

Q: When accounting for a bond whose interest is included in the face amount, the account Discount in…

A: Discount in Bond payable Issue of bond which can be incurred in between face value, discount and…

Q: Discuss the disadvantages of owning a bond

A: Bartleby's Guideline: “Since student have asked multiple question, we will solve the first question…

Q: Differentiate between mortgage bonds and debentures.

A: Mortgage bonds: Mortgage bonds are type of bonds in which holders have right towards real estate…

Q: How to calculate interest on bonds and how to journalize the interest.

A: Interest on bonds is computed on the basis of the rate mentioned on the bond on the face value of…

Q: are types of bond insurance available in the market (explain them)? How do the bond insurance affect…

A: Bond insurance are available in the market and this is done to improve the rating of bonds and…