what is the difference between bonds payable and accounts payable? explain your answer?

Q: In what ways do bonds amortize their discount and premium? Each one is explained in detail.

A: Solution concept Discount and premium bond               When the coupon rate of interest is greater…

Q: Define bonds payable.

A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from…

Q: Who Issues Bonds?

A: A bond is a fixed income instrument. The bond holders are referred to as the debt holders or…

Q: Compare the two commonly used methods of determining interest on bonds.

A:

Q: How does the payment of a bank loan’s principal and a bond’s par value differ?

A: A bank loan is a common method and process for a business to acquire money and capital for various…

Q: . How is the value of a bond determined?

A: Bond valuation: It may be a method utilized to decide a given bond's hypothetical reasonable value.…

Q: Will the amortization of Discount on Bonds Payableincrease or decrease Bond Interest Expense?…

A: There will be an increase in the interest expense due to the amortization of discount on bonds…

Q: How should discount on bonds payable be reported on the financial statements? Premium on bonds…

A: Concept: A premium on bonds occurs if, the bonds are issued at a high price than the face value. On…

Q: What are the contract rate and the market rate for bonds?

A:

Q: Why is the discount and premium on bond issues amortized?

A: The bonds can be issued at premium or discount on the basis of market rate of similar bonds.

Q: What is the principal repayment for a bond

A: There are two components principal and interest

Q: What is a bond payable?

A: Long-Term LiabilitiesLong-term liabilities are the obligations of the business that need not be paid…

Q: Bonds Payable is a type of current liabilities. True False

A: Bonds payable is a liability for the business, it means amount of bonds that the company has to…

Q: How is an interest payment on a bond calculated?

A: Bonds are debt instruments issued by corporations with a fixed interest rate(coupon rate) and…

Q: What amount of interest is expensed on a bond interest payment?

A: Whenever an interest payment is made on bonds, amount of interest expensed : Interest expensed =…

Q: From Service Leader's perspective, why are the bonds callable? What does that mean?

A: A callable bond is a kind of bond which allows the issuer to redeem the bond before it reaches its…

Q: Where and how are bonds proceeds recorded?  Bond interest and bond principal payments?

A: Bond is a financial instrument issued by the company to raise funds for the growth and development…

Q: What type of account is Premium on Bonds Payable? What is its normal balance? Is it added to or…

A: Bonds Payable: Bonds payable are referred to long-term debts of the business, issued to various…

Q: What are bonds classified as?

A: Issue of bonds is a source of funds of a company. They are an acknowledgement of debt taken by the…

Q: Why is it necessary to amortize the discount and premium on bond issues?

A: Introduction:   Bonds may be sold at a discount, at a premium, or at face value.

Q: What type of account is Discount on Bonds Payable? What is its normal balance? Is it added to or…

A: Bonds Payable: Bonds payable are referred to long-term debts of the business, issued to various…

Q: What are the different types of Bonds?

A: A corporate bond is a type of debt security that is issued by a firm and sold to investors. The…

Q: Discuss different types and characteristics of debt instruments with specific reference of Bonds.

A: Corporate bond- It is a bond issued by a company to fund its business operations, major expansions,…

Q: What does it mean to amortize a bond premium or discount? Why is it necessary?

A: Introduction: A bond is a contract between the bond lender and the bondholders. The two most common…

Q: How are bonds and notes the same? How do they differ?

A:

Q: link between the price of bonds and the rate of interest?

A: There is a inverse relationship between price of bonds and rate of interest.  If interest rate…

Q: How does collateral affect the interest rate on a bond? How does subordination affect the interest…

A: The interest rate on a bond is affected by many factors like collateral, subordination, etc.

Q: What are the similarities and difference between bonds and notes?

A: Notes payable: Notes payable is a written promise to pay a certain amount on a future date, with…

Q: How does accrued interest on a bond affect the purchase price?

A: Interest on bond is normally paid semi annually. When a bond is transferred in between these…

Q: Will the amortization of Discount on Bonds Payable result in a higher or lower Bond Interest…

A: Introduction: The amortization of discounts on bonds payable will increase interest costs. When…

Q: What is the main difference between notes payable and bonds payable?

A: Following are the differences between Bond and note payable.  Bond are issued to raise long term…

Q: What is the difference between serial bonds, term bonds, callable bonds, and convertible bonds.

A: Bonds are securities which are issued for specified period and bear fixed interest payable on the…

Q: How do we compute for the Carrying Value beginning of a Bonds Payable? of a Notes Payable? Are there…

A: The carrying value (or "book value") of the bond at a given point in time is its face value minus…

Q: Which of the following statements regarding bonds and their terms is FALSE?

A: All options given are correct  except  The yield to maturity of a bond is the discount rate that…

Q: What are the Pro's and con's of bonds?

A: The bonds are one of the most liquid and active financial instruments in the world. Bonds are…

Q: What are redeemable and irredeemable bonds? Explain in single sentence please

A: Redeemable bonds are the bonds which are redeemed after fixed no. of years.

Q: What is the difference between callable and putable bonds?

A: Bonds are debt instruments issued by a company that borrows from its lenders. They are issued at a…

Q: describe the characteristics and terminology of bonds payable

A: Definition of Bonds payable: Bonds are issued by Government , corporations etc.

Q: a. What is the discount or premium from the issuance of the bonds payable? Indicate whether…

A:

Q: What are the major advantages of using issuing bonds?

A: Bond is one of sources for the company to raise the funds. Bonds can be issued at par or at premium…

Q: What are the methods of determining interest on bonds?

A: Bonds:   Bonds are long-term promissory notes that are represented by a company while borrowing…

Q: How is the retirement of bonds recorded?

A: Retirement of bonds can be at maturity date or before maturity date. Accounting for bonds retired at…