Buscar
Estás en modo de exploración. debe iniciar sesión para usar MEMORY

   Inicia sesión para empezar

level: Long-Term Debt

Questions and Answers List

level questions: Long-Term Debt

QuestionAnswer
Bonds: Premium or Discount? Mkt (Yield) > Coupon RateDiscount
Bonds: Premium or Discount? Mkt (Yield) < Coupon RatePremium
Bonds: Issuance Journal Entry Include Bond Issuance CostsDR: Cash DR: Discount + Bond Issue Costs CR: Premium - Bond Issue Costs CR: Bonds Payable (Always Face)
Bonds: Methods of Amortization1) Straight-Line (GAAP tolerated, IFRS NO) 2) Effective-Interest (GAAP and IFRS required)
Bonds: Effective Interest Method CalculationFace x Coupon = Cash Paid CV x Mkt Rate= Interest Expense Int Expense - Cash Paid = Amort Amort always goes towards Face
Bonds: Straight-Line AmortizationFind difference between Face and Premium or Discount Divide difference by bond duration
Bonds: Journal Entry for Interest PaymentsDR: Interest Expense DR: Premium on BP CR: Discount on BP CR: Cash
Troubled Debt Restructuring: Debtor Asset Transfer CalculationFV assets transferred - NBV assets transferred = G/L (mark to mkt FV) CV of payable = FV assets transferred = Gain on Concession
Troubled Debt: Debtor Asset Transfer CalculationCV of payable = FV equity transferred = Gain on Concession
Troubled Debt: CreditorRecognize Bad Debt Expense
Troubled Debt: Debtor Modification of TermsProspectively and no gain or change in CV UNLESS CV > total future cash payments
Bonds: Finding Selling Price vs Issue PriceSelling Price uses Mkt Yield Rate Issue Prices uses Coupon/Stated Rate