
Concept Introduction:
Bonds payable:
The bonds payable can be defined as the instruments that enables the businesses to raise funds for their day to day business operations or any other financial needs like purchase of fixed assets – land, building, equipment etc.
If bonds are issued for more than their par value, it is said that they are issued at premium. The amount over and above the par value is premium amount.
If bonds are issued for less than their par value, it is said that they are issued at discount. The amount less than the par value is discount amount.
Issue at Premium:
If the market rate of interest is less than the coupon rate or the stated rate of interest, the bonds are issued at premium.
Issue at Discount:
If the market rate of interest is more than the coupon rate or the stated rate of interest, the bonds are issued at Discount.
Requirement 1
If TCU has issued bonds, at premium or discount.
Requirement 2
If TCU has issued bonds, at premium or discount.
Requirement 3
To prepare:

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Chapter 14 Solutions
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