a
Concept Introduction:
Bond financing: A bond is a written promise to pay an amount equal to the face
The entry on the first entry payment on June 30
b
Concept Introduction:
Bond financing: A bond is a written promise to pay an amount equal to the face value of the bond along with the interest promised. A bond requires payment of periodic interest payments, the interest payment is computed by the multiplication of par value with the bond contract rate, issuance of the bond has three main advantages, they are it does not affect the owner's control, bond interest is tax deductible, and issuance of a bond can increase the return on equity.
The entry to record the sale of bonds on July 1
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FINANCIAL AND MANAGERIAL ACCTG W/ACC CRD
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