material for bonds

debit cash
credit bonds payable

the journal entry for issuing bonds at face value is

debit interest expense
credit interest payable

the adjusting journal entry for accrued interest expense is

debit interest payable
credit cash

the journal entry for the payment of interest is

discount

when the stated rate is lower than the market rate, the bond is issued at a ____________

Premium

when the stated rate is higher than the market rate, the bond is issued at a ____________

face value

when the stated rate is the same as the market rate, the bond is issued at a ____________

debit cash
debit discount on bonds payable
credit bonds payable

the journal entry for issuing a bond at a discount is _________

debit cash
credit premium on bonds payable
credit bonds payable

the journal entry for issuing bonds at a premium is ____________

decreases

amortizing the premium __________ the amount of interest expense reported each period

debit bonds payable
credit cash

the journal entry for redeeming bonds at maturity is ________

carrying value*market rate

formula for calculating interest expense

par(face) value*coupon rate

formula for calculating interest payment

interest expense

carrying value*market rate

interest payment

par(face) value*coupon rate

debit interest expense credit discount on bonds payable credit interest payable

the adjusting journal entry for the accrued interest of bonds issued at a discount

debit interest expense debit premium on bonds payable credit interest payable

the adjusting journal entry for the accrued interest of bonds issued at a premium

credit

premium on bonds payable has a normal ____ balance

debit

discount on bonds payable has a normal ____ balance

contra liability

discount on bonds payable is a ____ account

liability

premium on bonds payable is a ____ account

debit interest receivable credit interest revenue

the adjusting journal entry for the accrued interest to be received is

debit interest payable credit cash

the journal entry for the payment of interest is