FAR 4 Module 4 Flashcards
What determines the market price of a bond issued at a premium?
How are proceeds allocated when bonds are issued with detachable warrants, and the bonds’ fair value cannot be determined?
What is the excess of the 10-year bond’s face value over the 15-year bond’s carrying amount, and how does it affect long-term liabilities?
CARRYING AMOUNT
How would you calculate the bond payable?
What does yield mean?
Yield refers to the effective rate of return that an investor earns on a bond, based on the bond’s current market price rather than its face value.
What are:
Debenture bonds
Variable rate bonds
Serial bonds
Term bonds
What is a stock warrant?
What is a detachable stock warrant?
How would you find the long term debt increase for following?
What is the net effect on long-term liabilities when a 10-year bond is issued at face value to retire a 15-year bond at face value?
How would you calculate proceeds on the sale of bonds?
How would you calculate the Approximate discount/premium for the following?
What is Annuity Due Vs. Ordinary Annuity?
How would you calculate the following?
What happens to interest expense when a bond is issued at a discount using the effective interest method?
What are the effects on interest expense and total stockholders’ equity if a PREMIUM on bonds payable is NOT amortized?
Interest Expense: Overstated
Total Stockholders’ Equity: Understated
How would you calculate this and what would be the JE’s?
What would be the JEs and calculation?
What are bonds discounts and premiums?
What are the Bond amortization formulas for:
Income Statement
Balance Sheet
What are the bond issuance for
Issued at Par
Issued at Discount
Issued at Premium
