Asked by
Faith Hernandez
on Oct 15, 2024
Verified
A discount on bonds payable occurs when a company issues bonds with an issue price less than par value.
Bonds Payable
Long-term liabilities representing money owed by a company to bondholders, to be repaid by a specified date.
Issue Price
Issue price is the cost at which new securities are offered to the public by an issuer, determining the initial capital raised from the financial market.
Par Value
The nominal or face value of a security as indicated by the issuer.
- Understanding the accounting treatment of bond issuance, including discounts, premiums, and carrying value.
Verified Answer
ZZ
Learning Objectives
- Understanding the accounting treatment of bond issuance, including discounts, premiums, and carrying value.
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