How are bonds reported when classified as trading securities?

Q: What is the major difference in the accounting for a portfolio of trading securities and a portfolio…

A:

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: Define bonds payable.

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

Q: Who Issues Bonds?

A: A bond is a fixed income instrument. The bond holders are referred to as the debt holders or…

Q: What are the difference between debt and equity and explain how the bonds market operates.

A: Debt are instruments which are used to fund a company’s requirement. These instruments include bonds…

Q: Under which of the following markets securities are newly issued? a. Primary Market b. Intermediary…

A: Financial security is a tradable asset issued by business entities and governments to raise capital…

Q: debt instrument

A: A Bond is considered as DEBT  INSTRUMENT

Q: Distinguish between the debt and equity securities markets

A: The debt securities market is a market that trades in debt that must be returned to investors, along…

Q: What are income bonds and indexed bonds?

A: The income bond is a type of debt instrument wherein the borrower is relied upon to pay just the par…

Q: How is the price of a bond (or bond issuance) determined?

A: solution concept coupon rate of bond               The coupon rate of the bond is the stated…

Q: Difference between bonds and stock.

A: Stocks: Stocks are the financial instrument that carries ownership interest, issued by the company…

Q: Which are the main types of bonds issued by two major issuers namely?

A: Corporate bonds It is a bond issued by the company for raising the capital and sold to an investor.…

Q: What are some differences among the following types of securities:debt, equity, and derivatives?

A: Securities are the financial instruments that can be traded in the market for financial…

Q: What does it mean when a company calls a bond?

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

Q: What amount of interest is expensed on a bond interest payment?

A: Whenever an interest payment is made on bonds, amount of interest expensed : Interest expensed =…

Q: how are convertible bonds measured initially on the balance sheet

A: Convertible bonds are a combination of Financial and Liability component. Therefore these are…

Q: What loss should Mirada record on the redemption of bonds?

A: Bonds are the financial instruments which shows the amount of ownership of debt in a business…

Q: What type of account is Premium on Bonds Payable? What is its normal balance? Is it added to or…

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

Q: What are convertible bonds? Which recording method is used?

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

Q: how to differentiate between:  premium bonds discounted bonds bonds at par?

A: Premium Bonds: A premium bond is a bond that trades in the secondary market at a price higher than…

Q: On a balance sheet, what valuation must be reported for short-term debt investments in trading…

A: Short term debt investments are those debt funds or mutual funds that are obtained for a short…

Q: Explain callable and putable bonds in detail. Why are they important to issuing firms or investors?

A: Callable bond: The bond having the privilege to redeem by the issuer before maturity.   Puttable…

Q: Discuss different types and characteristics of debt instruments with specific reference of Bonds.

A: Corporate bond- It is a bond issued by a company to fund its business operations, major expansions,…

Q: What factors determine a company’s bond rating?

A: The rates which are assigned by the bond’s rating agencies to indicate the bond’s credit quality is…

Q: Define the term debt securities.

A: Debt security refers to a debt instrument, such as a government bond, corporate bond, certificate of…

Q: What is general obligation bonds?

A: Bonds: A bond, also recognized as a fixed-income security, is a debt instrument shaped for the…

Q: what are treasury-indexed bonds?

A: Treasury Indexed Bonds are medium to long term securities for which the security's capital worth is…

Q: How the bonds market operates?

A: Bond markets are categorized in to two primary market and secondary market. Primary market is the…

Q: What is the difference between a corporate bond and a registered bond?

A: Introduction: Bonds are an example of a loan. It is similar to an IOU and so when you buy bonds, you…

Q: Explain the Debt Investments Classified as Trading Securities.

A: Debt:   A debt is an obligation that requires on entity called the debtor to pay back a borrowed sum…

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: What are the different factors that affect the interest rates set by issuers of debt securities?

A: Debt securities seem to be financial assets which guarantee their holders interest payments in the…

Q: Define Issuance of Equity Securities.

A: Investments:   Companies invest in stocks and bonds of other companies or governmental entity to…

Q: Define debt securities and equity securities.  Include their similarities and differences in your…

A: Introduction: Securities: Securities are the financial instruments that are used for the purpose of…

Q: How to journalize the purchase of bonds.

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

Q: What is the difference between annuities and corporate bonds?

A: An annuity is a lump sum or a series of payments paid to someone on a periodic basis. In other…

Q: Explain the main difference between bond and common stock?

A: Debt markets are markets where you contribute within the institutions or trade substances by the…

Q: How do premiums and discounts on long-term debt securities affect interest expense?

A: Long term debts are used by the large organisations to raise the fund and utilise them for various…

Q: What are the differences between stock and bonds?

A: Stock is the share of ownership in the company. Bond is a debt instrument where the investor…

Q: Are bonds considered as fixed income securities?

A: Bonds are a type of loan taken by the borrower that promises to pay a certain sum as an interest to…

Q: On a balance sheet, what valuation must be reported for debt securities classified as…

A: Balance sheet: A balance sheet prepared after the income statement represented organization assets,…

Q: What are the methods of determining interest on bonds?

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

Q: Trading bond investment are reported at

A: Investments held for trade are recorded at Fair value and their fair value is assessed and adjusted…