Debt Flashcards
How do you calculate the bond’s carrying amount at the end of a year when using the effective interest method?
How do you calculate the bond issue cost (BIC) for the income statement?
How do you calculate the current liability when a long-term note is payable in installments?
How do you calculate bond interest expense for a bond issued during the year? (Update this to include exact formula)
How do you calculate the carrying value of bonds issued with detachable stock warrants when both Fair values are known?
How do you calculate the annual stated interest rate on bonds?
How are earnings from a bond sinking fund treated?
How do you calculate a bonds following year carrying value when issued at a discount using the effective interest method and given initial CV?
How do you determine if there’s a gain on troubled debt restructuring involving only a modification of terms?
How do you report a gain or loss when a company retires bonds early?
What happens if a company uses the straight-line method instead of the effective interest method to amortize bond premiums?
Effective interest method reports higher interest expense initially.
How do you calculate the Net Present Value (NPV) of an investment?
How do you calculate a gain or loss on early bond retirement, including bond issue costs?
How do you calculate the premium or discount on bonds issued with detachable warrants?
How do you calculate the total bond issue proceeds when bonds are issued after the dated date, including accrued interest?
How do you calculate the discount or premium for bonds with detachable warrants when both fair values are known?
How does interest expense behave when a discount on bonds payable is recorded using the effective interest method? ( FIX THIS CARD, NO ANSWER)
How do you calculate the unamortized discount for bonds, and when do you use it?(FIX THIS , is this for straight line method).
How do you classify a note payable as current or noncurrent when it is being refinanced given collateral and a limit
How do you calculate the unamortized bond premium using the effective interest method?
How do you calculate the remaining note payable after a quarterly payment? Remember, note payable is not a Bond
How do you JE the issuance of a bond at 98 with a face value of $50,000?
A client bought a bond at a discount. What does this say about the market interest rate compared to the stated rate?
How do you allocate proceeds when both FV of bonds and warrants are known vs. only one is known?
How do you classify term, debenture, serial, and collateralized bonds?
How do you calculate the required payment for an annuity due to accumulate a specific future value?
What happens to a bond’s price when the market rate is lower than the bond’s interest rate?
What is the step-by-step process to calculate the issue price of bonds given TVM info
A company issues $1,000,000 in bonds at a premium of $50,000, with bond issuance costs of $20,000. How do you calculate the net proceeds?
How do you calculate the gain or loss on bond redemption, including unamortized bond premium, bond discount, and issuance costs?
How do you calculate interest income after a troubled debt restructuring when the terms include reduced interest rates and extended maturity?
How do you calculate the gain on restructuring debt when a company exchanges an asset (e.g., land) for a note?
How do you calc the G/L on restructering of debt if no payments are mentioned? (This card needs work)
What’s the difference between debt restructuring and troubled debt restructuring (TDR)?
Net Present Value (NPV) Calculation steps to determine profitability of investment:
Calculate the annual payment needed to accumulate a specific future value (FV) when deposits are made at the beginning of each period.
What are the steps to calculate the bond’s value at the end of Year 1 when given present value information.
How to calculate the new note payable balance after a quarterly payment?
How do you calculate interest payable on bonds at year-end?
How is the sinking fund reported on the balance sheet?
How should a note payable be presented if it has no stated interest rate and the fair value of services is less than the note’s face value?
How can you determine if a debt restructuring is classified as a troubled debt restructure?
How do you calculate the gain on restructuring debt in a troubled debt restructuring when an asset is given up.
What are the Steps to Solve for Present Value and Interest Income in a Debt Restructuring
How to calculate Restructuring Debt Gain when cash is paid to settle Debt
