[vodrldnr]

any issuance cost for bond is treated like a deferred charge and amortized over the life of bond ..

and As to stock issuance cost, APIC is decreased for the cost…

but I found on internet that some cost such as finder’s fee is expensed in the period incurred ..

can someone plz clearly explain how Bond and stock issuance work?

my note itself makes me so confused … whoa … I really feel like I am stupid ..

It ain't About How Hard You Hit

[pharaoh]

Issuance cost as far as I remember printing and engraving the bond, this is what you recognize like discount and amortize. Finders fee is like paying commissions is expensed as incurred.

For the stock issuance i am not sure what you mean there. Generally you issue stock at par let's say 10 and stocks were issued at 15
So the JE is going to be
Dr.Cash. 15
Cr.CS. 10
Cr.APIC 5

AUD - 93
BEC - 79
FAR - 84
REG - 83

Roger & Ninja MCQ

DONE

FAR 8/2016
AUD 1/2017
REG TBD
BEC TBD

[Author]

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