What will be the accounting for a bond premium

Assignment Help Accounting Basics
Reference no: EM131768489

The effect of a premium on bonds issued to finance a capital project is that more resources are received on the issuance of the bonds than originally planned. The use of these resources will depend on the terms of the bond issue. This extra cash may be used in the construction activities, or, in some instances, it must be transferred to a Debt Service Fund. The key is the terms of the bond indenture. Bond premiums should be accounted for separately from the face amount of the bond. what will be the accounting for a bond premium, will it include a credit to the account Other financing source bond issue premium?

Reference no: EM131768489

Questions Cloud

Identify two potential partnerships that you would establish : Identify two potential partnerships that you would establish in order to support your client and those like him or her outside of the therapeutic environment.
How does alternative splicing affect the disorder : How does alternative splicing affect the disorder? Does abnormal chromatin remodeling affect other genes? Where in the gene does the aberrant splicing occur?
Differentiate between specification and implementation : 1) Be able to differentiate between specification and implementation both for classes and for individual methods.
Determining the health risk in smoking : The A & B Tobacco Co., a U.S.-based multinational company with its headquarters in Dallas, Texas, has manufactured and sold cigarettes in the United States.
What will be the accounting for a bond premium : what will be the accounting for a bond premium, will it include a credit to the account Other financing source bond issue premium
Create necessary journal entries on the books : On December 31, assume the investee reports a net income of $100,000 for the year. Please help create necessary journal entries on the books of the investor
Identify the license requirements for your chosen profession : Identify the license requirements for your chosen profession including the name of the government agency through which you would apply for a license.
Demonstrate the use of inheritance : Write the simplest example you can of two classes that use inheritance.
How the lead incident commander should respond to incident : Explain how the lead incident commander should respond to this incident based on the Emergency Response Guidebook (ERG).

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd