14.01 Notes Payable (bonds, and stuff)

Question 1

Bond Classification where the maturity date is one single date ?

Answer 1

This is a Term Bond

Question 2

Bond Classification where there are multiple maturity dates , at regular intervals throughout their lives?

Answer 2

Serial Bonds !

Question 3

Name of Bonds that are unsecured by collateral and backed by the issuers general credit

Answer 3

Debenture bonds

Question 4

Name of bonds that are secured by specific assets ?

Answer 4

Collateralized bonds

Question 5

In the gain or loss on Bond redemption, what happens to the face value of Bonds payable when determining the Carrying value?

Answer 5

(+) Unamortized bond premium
(-) Unamortized bond discount
(-) Unamortized bond issue costs

Question 6

In the gain or loss on Bond redemption, how do you get to the value you need to determine if there is a gain or loss

Answer 6

take the
1Bond carrying value , then
2. Subtract cash paid to redeem bonds.
3. You have a gain if the Carrying value is greater than the cash paid
4 Loss if the Carrying value is less than the cash paid