Bond premium should be reported in the statement of financial position A. at the present value of the future reduction in bond interest expense due to the premium. B. as a direct addition to the face amount of the bonds. C. as a deferred credit. D. along with other premium accounts such as those resulting from share capital transactions.

Q: The printing costs and legal fees associated with the issuance of bonds should Select one: a. be…

A: As per IFRS 9 and IAS 39, bonds issuance costs shall be accounted for as a reduction from the issue…

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: Under the incremental method the proceeds from the sale of debt with detachable stock warrants…

A: when the detachable stock warrant are attached to the debt the proceed from sales should be…

Q: The purpose of a discount price for bonds is to: Select one: a. Increase profits b. Compensate the…

A: solution Concept The bond is issued at discount when                 -the coupon rate is less than…

Q: Which of the following is not alid statement regarding nds payable? * a. Bonds issued by an entity…

A: Solution: "The amortization of a bond premium increases both the recorded interest expense and…

Q: he amortization of premium on bonds payable will _____________ the net income.

A: Net Income:-  Net income is also considered as the net earnings and net profit of the business that…

Q: Which of the following is not a valid statement regarding bonds payable?    a. Bonds issued by an…

A: Solution: "The amortization of a bond premium increases both the recorded interest expense and…

Q: When the cash proceeds from a bond issued with detachable stock purchase warrants exceed the sum of…

A: The issue of a bond with a detachable warrant includes the issue price of the fair value of the…

Q: Interest expense on the income statement: A) B) C) D) is net of any bond premium amortization will…

A: Interest expense on the income statement:Answer: (A) is net of any bond premium amortization

Q: On the maturity date of a bond​ investment, the journal entry includes​ ________.   A. a debit to…

A: The held-to-maturity debt investment account is classified as long-term investment account. The…

Q: Bond issuance costs must be reported separately as deferred charges and charged to expense over the…

A: The costs associated with issuing the bonds are known as bond issue costs. Example - Legal fees,…

Q: 4. The gain or loss on the retirement of bonds prior to maturity should be * a. recognized in income…

A: Gain or loss on redemption of debenture prior to its maturity is immediately recognised in profit…

Q: hen the effective cost of d

A: Cost of debts is the effective rate which is given by a company for paying on its debt.

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: According to the PFRS, discount or premium on bonds payable may be amortized using the straight-line…

A: The given statement is True.. According to the PFRS, discount or premium on bonds payable may be…

Q: Bond issue costs, such as printing fees, legal fees, commissions, etc. are most appropriately…

A: solution  Bond issue costs, such as printing fees, legal fees, commissions, etc. are most…

Q: Premiums or discounts associated with available-for-sale debt securities are a. usually not…

A: Answer b. amortized to interest revenue over the life of the investment Accounting standards…

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: When a company retires bonds early, the gain or loss on the retirement is the differencebetween the…

A: Bonds:   Bonds are long-term promissory notes that are represented by a company while borrowing…

Q: Bonds payable are initially recognized at A. issue price minus transaction costs incurred by the…

A: Bonds are the capital market securities that represent a borrowing instrument for the issuer of…

Q: The following items are found in the financial statements. Indicate how each of these items should…

A: Introduction: Balance sheet: All assets and liabilities are shown in Balance sheet. It tells the net…

Q: 1. The amortization of a discount on an investment in bonds measured at amortized cost   A.…

A: A bond is a financial instrument that provides its holder a fixed income in the form of coupon…

Q: . Distinguish between the following values relative to bonds payable: a.    Maturity value. b.…

A: Definition: Bonds: Bonds are a kind of interest bearing notes payable, usually issued by companies,…

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: Bond issue costs, such as printing fees, legal fees, commissions, etc. are most appropriately…

A: Bonds are a form of loan or debt which is being issued by the business, on which regular interest…

Q: Select the term that best fits each of the following definitions and descriptions.

A: Bonds are the liability of the company which they have to pay after the expiry of the bond’s…

Q: T or F  -Under generally accepted accounting principles, gain or loss must be recognized on the…

A: Conversion of Bonds- refers to the issue of equity or preferred stock to the bondholders to settle…

Q: unamortized premium

A: Any unamortized premium should be reported on the balance sheet of the issuing corporation as Answer…

Q: The journal entry a company makes for the payment of interest, interest expense, and amortization of…

A: Journal entries are passed following the golden rules of accounting. Debit all assets and expenses…

Q: When bonds are issued at a premium and the effective interest method is used for amortization, at…

A: When bonds are issued at a premium and the effective interest method is used for amortization, at…

Q: When bonds are purchased between interest dates, the accrued interest should be a. debited to the…

A: Accrued Interest It is the unpaid interest  which is earned by a bondholder  since last interest…

Q: Bond issue costs a. should be amortized by the straight-line method to interest expense b. should…

A: 16 (a) should be amortized by the straight-line method to interest expense

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: The use of the effective-interest method to amortize a discount associated with the acquisition of…

A: The effective interest method is used when the bonds are to be amortized or issued at a discount.…

Q: A bond backed by the future potential earnings and credit rating of the company is called a Group of…

A: A) Debenture bond is a type of bond which is unsecured by collateral. B) Serial bond is a type of…

Q: When bonds are issued at a discount and the effective interest method is used for amortization, at…

A: Effective interest method If bond is issued at discount and effective interest method is used for…

Q: Identify the following as either an advantage (A) or a disadvantage (D) of bond financing for a…

A: Definition: Bonds are a kind of interest-bearing notes payable, usually issued by companies,…

Q: end. What should be the balance of the Fair on Bonds Payable? Show Value Adjustment your work.

A: Bonds payable is the payable of the bonds which has been issued by the company and which is the…

Q: Under IFRS, bond issuance costs, including the printing costs and legal fees associated with the…

A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from…

Q: Which of these items related to bonds would be added back in the Operating section of the SCF under…

A: Bonds means the kind of instrument which acknowledges the debt due from one company to bond holder…

Q: If a bond issuer incurs a loss on bond redemption, the loss is reported on the income statement…

A: Revenue - It is amount of income earned through sales of goods or services .  Cost of goods sold -…

Q: How is the premium or discount on debt investments at fair value through profit or loss accounted…

A: In case of FVTPL the initial  recognition  is at fair value.

Q: When the initial present value of a bond payable is higher than its face amount, an entity would…

A: The answer is stated below:

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

A: Unamortized discounts on bonds payable are considered as a decrease in carrying value or book value…

Q: Which  of the following statements is correct in regard to trading bond investment? a. Trading bond…

A: Introduction: Trading securities: Buying and selling of any financial securities called as Trading…

Q: Calculate the accrued interest (in $) and the total proceeds (in $) of the bond sale. (Round

A: Bond is an instrument that carries fixed coupon payment with them. These are issued to those…

Q: Bond premium should be reported in the statement of financial position O at the present value of the…

A: Introduction:- Bond premium means investors are  willing to pay more than the face value of the…