Bonds Payable Flashcards
1
Q
what is a bond payable
A
Type of note that requires issuing entiy to pay the face value of bond to the holder when it matures and usually to pay interest peridically.
2
Q
when is face value repaid
A
face value is repaid at maturity date
3
Q
whats a principal
A
portion of each payments is interest and a portion
4
Q
interest paid, journal entry
A
Debit Interest Rate
Credit Cash, Interest Paid
5
Q
what is a premium
A
any amount paid above the face value
6
Q
whats a discount
A
bonds issued below the face value
7
Q
journal entry for bonds issued at par
A
Debit Cash
Credit Bonds Payable
8
Q
Bonds issued at premium journal entry
A
Debit Cash
Credit Bond Premium
Credit Bond Payable
9
Q
Bonds issued at discount journal entry
A
Debit Cash
Credit Bond Discount
Credit Bond Payable
