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