When bonds are retired at​ maturity, ________. A. the carrying value always equals the face value   B. the carrying value equals the face value plus the unamortized premium or less the unamortized discount   C. the bondholders are paid the face value plus the unamortized premium or less the unamortized discount   D. the entry to retire the bonds may include a gain or loss on retirement of bonds

Q: When the effective-interest method is used to amortize bond premium or discount, the periodic…

A: Solution Concept If the coupon rate of bond is greater than the market rate of interest , bond is…

Q: ight-line method of amortization is used, the amount of unamortized premium on bonds payable will…

A: Amortization is the method of reducing or accounting for, an amount over a period of time. Over the…

Q: what causes the bond liability for a bond issued at a premium to decrease each interest payment…

A: Bond premium is the premium which has been received by the company who has issued the bond by way of…

Q: The Premium on Bonds Payable account is amortized and reduces the Interest Expense compared to the…

A: Premium on bond payable is recorded when the issue price of bond is higher than face value of bond.…

Q: 14. If bonds are redeemed on maturity date, any premium or discount * a. Is carried forward and…

A: When bonds are issued at premium or discount, its discount or premium will be amortized over the…

Q: Serial bonds are a. Bonds backed by collateral.b. Bonds that mature in installments.c. Bonds the…

A: Bonds: These are the corporate debt units that a company issues and securitizes as tradeable assets.…

Q: When bonds are issued at a premium the debt declines each period. Explain.

A: Bonds are the debt instrument which is issued by the company so as to raise funds from outsiders.…

Q: A debit to Premium on Bonds Payable would least likely be possible on which of the situations?…

A: The bonds are issued at premium when market rate is lower than the coupon rate of bonds.

Q: Which is true when a bond payable is issued at a discount? Proceeds from issuance is lower than the…

A: When the bonds are issued at a discount: Discount on bonds payable are debited at the time of…

Q: When bonds are issued at a premium, what happens to the carrying value and interest expense each…

A: Issuance of bonds at premium means cash received on the issue is more than the par value of the…

Q: When a bond sells at a discount, the carrying value ________ after each amortization entry.A.…

A: Bonds payable is a form of loan or debt that is being taken by the business. Regular interest…

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 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: The amortization of premium on bonds payable will _____________ the net income. a. increase b.…

A: Bonds are a form of loan or debt taken by the company. When bonds are issued at a price more than…

Q: When a company exercises its call provision on bonds, the company pays the book value of the bonds…

A: Call provision on the bond is the option held by the issuer for redeeming back the bonds if in case…

Q: bond issuance costs are incurred

A: First option is wrong because one among the options is correct. Second option is wrong because…

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

A: Formula: Maturity value = Bond Face value +  Interest

Q: When bonds are retired prior to maturity, the excess of the retirement price of the carrying amount…

A: Bonds are the instruments held by the entity for the purpose of raising finance. These are the debt…

Q: Refundable deposits Consists of cash on property received from customers but which are refundable…

A: In a kind of sum where we need to match the items means that we have got few terms on one side and…

Q: Which of the following statements regarding bonds is true?   Group of answer choices a. Bonds are…

A: Bonds are common fixed income instruments issued by an organization to the investor.

Q: Which of the following is true of a discount on bonds payable? * G O it is a contra-stockholders'…

A: Payments = Interest expense + Discount bonds payable Payment remains equal every time.   As the…

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: Consider the following statements: Statement 1. When amortizing a bond discount, the bond's…

A: please see only  bond's amortization cost (column no. 4 ) and interest expenses column (column no.…

Q: As the bond discount is amortized, the carrying value of the bonds will increase. True False

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Under the effective interest method of bond discount or premium amortization, the periodic interest…

A: For the purpose of running the operations of the company, the company's will issue financial…

Q: If bonds are issued at a discount and the effective-interest method is used, the amount ofinterest…

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

Q: f bonds are issued at a discount, it means that the   a. bondholder will receive effectively less…

A: Solution: If bonds are issued at a discount, it means that the "market interest rate is higher than…

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: nds are the bonds which are redeemed after fixed no. of years. T/F?

A: Bonds refer to a fixed-income instruments issued by companies to the investors. Bonds act as a debt…

Q: A bond is issued at a price of 103 and retired early at aprice of 97. Which of the following is…

A: Bond Bonds are basically a debt instrument which consist of a promise to pay back the money with…

Q: Which of the following is true of a discount on bonds payable?   it is a contra-stockholders’…

A: Interest paid on bonds consists of two components: Interest expense and Discount on bonds payable…

Q: Over the term of the bonds, the amount of unamortized discount will a. be unaffected until the…

A: Bonds are those note which are traded in the public market and these are sold for more or less than…

Q: Which statement is correct when the effective-interest method is used to amortize bond premium or…

A: Instead of employing the straight-line method, the effective-interest method of amortization will be…

Q: Amortizing the discount on bonds payablea. increases the recorded amount of interest expense.b.…

A:

Q: When a company uses the the effective-interest method to amortize a bond discount amortization, the…

A: As per effective interest method, there are two ways of recognizing the interest expense. first the…

Q: Which of the following is FALSE regarding bonds? ) Long term bonds have greater interest rate risk…

A: A bond is an instrument that represents the loan that is made by the investor to the company and…

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: 1. Trading bond investments are reported at   A. Face amount B. Amortized cost C. Maturity value…

A: 1. Trading investments are held-for-trading securities that can generate a profit from the…

Q: A serial bond repayment plan involves a(n) Group of answer choices A. series of installments to…

A: Bond involves both interest and principal payment.

Q: Which of the following is the best explanation of what the call premium is?   Group of answer…

A: Call premium refers to the amount over (above) the par value of a share or bond which is payable to…

Q: When the effective-interest method of bond discount amortization is used, the carrying value of the…

A: Introduction: Bond discount: When the bond issued for less than face value called as bond discount.

Q: Which of the following is not an effect of a call provision? A. Issuer can refund the bond issue if…

A: A call provision is right of the issuer to redeem bonds before maturity

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

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