When a bond is held with the objective of collecting principal and interest payments over the life of the bond, it should be account for using which of the following methods FV through OCI OFV through profit and loss method None of the choices

Q: The date on which the principal amount is repaid to the bond holder is known as the?

A: One of the most common sources of arranging the finance used by the business entity is to issue…

Q: What does the call provision for a bond entitle the issuer to do?

A: The call provision for a bond is a feature that allows the issuer, which is typically a corporation…

Q: The Discount on Bonds Payable account is: Multiple Choice O O O O O An expense. A liability. A…

A: An expense account is not carried forward and closed in the income statement. But Discount on Bonds…

Q: If the going concern assumption is not made in accounting, discuss the differences in the amounts…

A: The company prepares its financial report based on generally accepted accounting principles. The…

Q: A callable bond allows the person holding the bond to redeem it before its maturity date for the par…

A: Bonds are debt instruments where the issuer makes specified payments ( interest and principal) to…

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: What is the principal repayment for a bond

A: There are two components principal and interest

Q: What is the treatment of transaction costs from issuance to a bond payable measured using the…

A: Transaction costs: Transaction costs also known as issue costs, are those costs that are incurred…

Q: How much is the carrying amount/initial recognition of the bond for each of the below…

A: Given in the question: Face Value of Bond = 2,000,000 Life = 5 Years Coupon Rate = 10% Ongoing…

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: The PFRS allows for the straight-line amortization of discount or premium on bonds due

A: Introduction: The PFRS provides for the amortization of discount or premium on bonds payable in a…

Q: A bond that is eligible for redemption before it is due to be paid off is _____.

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

Q: The balance in Unamortized Premium on Bonds Payable should be O a. reported separately in the…

A: The bond premium is the excess amount that the bond is priced at over its face value. If the amount…

Q: True or False: Bond issuers agree to pay interest to those who purchase bonds and hold them to…

A: Bonds are the long-term debt instruments used by governments and corporations to raise loan.

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: convertible bond

A: Correct Answer :- B Convertible Bond

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: How is an interest payment on a bond calculated?

A: Bonds are debt instruments issued by corporations with a fixed interest rate(coupon rate) and…

Q: what is the principal amount repaid at the maturity of a bond is called?

A: Bond is a debt instrument which is issued by corporates or governments to raise funds for any…

Q: When bonds are acquired between interest payment dates, the price paid for the bond is:         a.…

A: The bonds are considered as long-term liabilities for the organizations and interest accrued are…

Q: O c. callable bom O d. debenture E

A: Debenture: A debenture is a written document or certificate acknowledging borrowing by the company.…

Q: Identify the term being referred to: A type of bond that requires a portion of the face amount be…

A: The type of bond that pays off a portion of face value periodically includes a proportionate payment…

Q: Bonds that may be redeemed prior to maturity at the option of the issuer are called a. early…

A: Bonds are fixed-income securities representing a loan made by an investor to a borrower, typically a…

Q: Why is it necessary to amortize the discount and premium on bond issues?

A: Introduction:   Bonds may be sold at a discount, at a premium, or at face value.

Q: Show ful calculation for Bond A and Bond B

A: Price of the bond is the PV of all future coupons and par value discounted at the YTM or yield. The…

Q: The effective interest method of amortizing bonds allocates the same amount of expense to each…

A: In an accounting practice, the effective interest method is used to discount a bond. If the bonds…

Q: Which of the following would NOT be included in the journal entry to show the conversion of bonds…

A: Journal entry: A journal entry is a documentation of a business's financial activities kept in its…

Q: When does a premium on bonds payable occur?

A: Bonds Payable: Bonds payable are referred to long-term debts of the business, issued to various…

Q: Bond discount should be presented in the financial statements of the issue as a(n) Contra liability…

A: >Bond discount is recorded in the books of account as the difference between Face value of Bond…

Q: How does accrued interest on a bond affect the purchase price?

A: Interest on bond is normally paid semi annually. When a bond is transferred in between these…

Q: Assuming the bonds are issued at a discount, explain how each column in an amortization schedule is…

A: Introduction: The process of transforming long-term loans or bonds into a series of monthly payments…

Q: What are the two ways for amortizing bond premiums and discounts? Each one must be explained.

A: One of the sources used by the corporation to raise capital is the issue of bonds. Types of bonds:…

Q: Amortizing the discount and premium on bonds is done in two ways. Describe each one.

A: Amortization means the reduction in the amount of liability due to write offs over a regular period.

Q: The debt component of convertible bonds issued using IFRS is the a. present value of the future cash…

A: When a company issues a convertible bond under International Financial Reporting Standards (IFRS),…

Q: Which of the following is considered the principal when figuring interest for a bond? Group of…

A: Principal of bond is the amount on which internet is calculated with effective rate of interest for…

Q: At a bond's maturity, the bond issuer pays the bondholder the par value of the bond. True or False…

A: Lets understand the basics.Bond is issued by entity to obtain finance from outside or paying against…