Topic: Unamortized Discount on Bonds Payable
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Answers to Common Questions
What is Unamortized Bond Discount?
difference between the face value (par value) of a bond and the proceeds received from the sale of the bond by the issuing company, less whatever portion has been amortized, that is, written off to expense as recorded periodically on the pr... Read More »
Source: http://www.answers.com/topic/unamortized-bond-discount
How to find Unamortized Bond Discount ?
It appears you are looking for the market value of the bond. The cash would be the amount you were paid for the bond (market value) and the unamortized discount would be the difference between the market value and par at issue. Since the bo... Read More »
Source: http://answers.yahoo.com/question/index?qid=20070516215025AAJfuoY
How to calculate the unamortized bond discount?
When the bond was issued, Dr Cash $939,000 Dr Bond discount $61,000 Cr Bond payable $1,000,000 The 1st yr bond interest is $939,000 at market rate of 10%, i.e. $93,900, so at the 1st interest payment date, Dr Interest expense $93,900 Cr Bon... Read More »
Source: http://answers.yahoo.com/question/index?qid=20080522141848AAK98kd
More Common Questions
Answers to Other Common Questions
they will all be on current asset because capital/funds can be generate through these factors Source(s): Financial Accounting 1
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Source: http://answers.yahoo.com/question/index?qid=20060822060911AAgAZQS
The use of long-term bonds is one of the ways a corporation can acquire financing to expand the business or pay existing obligations. When a corporation finances the company’s activities using bonds, it creates an obligation for the company...
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Source: http://www.ehow.com/how_12055772_debit-discount-bonds-payable.htm...
Par value of a bond less the proceeds received from the sale of the b...
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Source: http://www.chacha.com/question/how-do-you-figure-out-unamortized-...
Start by calculating interest expense for the period, at 10% of 939,000, or 93,900. Interest paid will be 90,000 every year. So Debit Int Expense 93,900, Credit Cash 90,000 and Credit Bond Discount for the difference - 3,900. Balance in Bon...
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Source: http://answers.yahoo.com/question/index?qid=20091110140941AAEg9qV
[Debit] Cash $213,420.20 [Credit] Bonds Payable $200,000 [Credit] Premium on Bonds Payable = $13420.20 Source(s): Excel Price function for bond price
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Source: http://answers.yahoo.com/question/index?qid=20101208141822AAbPMmc
When bonds are issued at a Coupon (or Face) rate that equals the current market rate, there is no premium or discount. But if a bond pays a rate of 5%, and the market rate is only 4% on the date of issue, then the bond will sell at a premiu...
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Source: http://answers.yahoo.com/question/index?qid=20111029105625AAq8J2J
Discount on bonds payable occurs when a bond’s stated interest rate is less than the bond market’s interest rate. If a $1,000,000 bond issue promises to pay interest of 8% per year and the bond market demands 8.125%, the bonds will sell for...
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Source: http://blog.accountingcoach.com/discount-bonds-payable/
