Bonds: Discount & Premium (Lesson 11.2)

Описание: In this video, we examine bonds issued at a discount or premium. We spend a considerable time looking at the "why" behind this, before turning to the journal entries and the numbers. Once we have established the underlying rationale for accounting for discount and premium bonds, we examine the journal entries for issuance and amortization of these bonds, using the Straight-Line Amortization method. We conclude our discussion with a brief review of the "cost of borrowing" and why it varies between discount, premium, and face value bonds.

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