Bonds Flashcards
Issuance of Bond at Par (Borrower)
DR: Cash
CR: Bonds Payable (Par)
Issuance of Bond at Par (Investor)
DR: investment in bonds
CR: cash
Bonds Issued at a Discount (Borrower)
DR: Cash
DR: Discount on Bonds Payable
CR: Bonds Payable (Par)
Bonds Issued at a Discount (Investor)
DR: Investment in Bonds (actual price)
CR: Cash (actual price)
Bonds Issued at Premium (Borrower)
DR: Cash
CR: Premium on Bonds Payable
CR: Bond Payable (Par)
Bonds Issued at Premium (Investor)
DR: Investment in Bonds (actual price)
CR: Cash
Interest Payments (Borrower)
DR: Bond Interest Expense
CR: Cash
Plug: DR: Premium on bonds payable
CR: Discount on Bonds Payable
Interest Payments (Investor)
DR: Cash
CR: Bonds Interest Revenue
Plug: DR or CR: Investment in Bonds
Bonds amortization including bond issuance costs (Borrower)
Same as Bonds issued at a discount except you add issuance costs.
new entry name is Discount AND Bond issuance costs
Bonds issued between interest dates
DR: Cash
DR: Discount
CR: Bonds Payable
CR: Bond Interest Expense
Interest payment on bonds issued between interest dates
DR: Interest Payable
DR: Interest Expense
CR: Cash
Year end bond interest accrual and discount amortization
accrual: DR: Interest Expense
CR: Interest Payable
Discount amortization
DR: Interest Expense
CR: Discount on Bonds Payable
Convertible Bonds (Book Value) GAAP
DR: Bonds Payable
DR Premium
CR: Common Stock
CR: APIC
Convertible Bonds (Market Value Method) Not GAAP
DR: Bonds Payable DR: Premium DR: LOSS CR: GAIN CR: Common Stock CR: APIC
