SU 10

Question 1

What is the difference between an ordinary annuity and an annuity due?

Answer 1

Ordinary annuity payment is due at the end of the year or period, and an Annuity due is due at the beginning of the period or year.

Question 2

How are bonds payable presented in the balance sheet?

Answer 2

Bonds payable are reported in the balance sheet at their face amount (1) minus (plus) any unamortized discount (premium) and (2) minus any unamortized debt issuance costs.